According to a company announcement, fixed income trading platform Bondcube has been granted an approval by the UK Financial Conduct Authority (FCA) to operate across the 31 member countries of the European Union.
The platform is aiming to solve the liquidity problems with large transactions and illiquid bond trades. The technology used with the service scans for indications of interest to minimize the market, uses dark matching to find the other side of the trade and uses historic orders to find matches in infrequently traded bonds.
By getting regulated by the FCA, the solution will get even more liquid as fixed income traders from across Europe will be able to make use of indications of interest to minimise market risk, dark matching to find the other side of the trade and historic orders to find matches in infrequently traded bonds.
The solution is an alternative to the existing trading infrastructure of Buy-side RFQ to Sell-side trader.
Bondcube’s CEO, Paul Reynolds, explains, “With Europe wide ratification of our FCA approval, we will be positioned to support the vision of a borderless European market. Our status will enable a broader range of sell and buy-side firms to connect to our platform.”
“As a rigorously regulated trading platform, we have made considerable investment in technology to ensure transparent risk management and market surveillance whilst providing an alternative route to previously untapped liquidity,” he added.
The application to become a crossing network was filed under the Financial Services and Markets Act 2000. The company’s FCA firm reference number is 624881.