Euronext signed an innovative partnership with Algomi, to link the strengths of a market incumbent with those of a Fintech. Together we create a new ecosystem with inter-connected market participants. Combining Euronext’s experience operating fair and orderly markets and Algomi’s innovation and award-winning technology, this new MTF – Euronext Synapse - connects pools of liquidity and market participants within a new anonymous inter-dealer centralised market place. It links banks and their customers together for liquidity, execution and reporting services with the appropriate level of protection for fixed income markets. Euronext Synapse turns disparate data into relevant and structured information, and increases trade opportunities and velocity in bond markets.
The new landscape and maturity of Fixed Income markets generates new pressing needs. The key issue is:
In November 2016, Euronext and Algomi signed a 10 year strategic partnership agreement to form a Joint Venture Special Purpose Vehicle (“JV SPV”), capitalised by Euronext, licensing Algomi’s leading edge technology on a pan-European exclusive basis to our newly established MTF Euronext Synapse, owned and operated by Euronext.
By linking together Euronext, the banks and investors in a collaborative network, Euronext becomes a centralized market place for pan-European corporate bond trading. Multiple streams of synergies in technology and market data will be explored jointly with Algomi through the JV SPV.
In March 2017, Euronext expanded its Joint Venture globally, to launch a new network of fixed income venues, and made a $10 million strategic investment in Algomi.
This strategic investment will enable corporate bond traders to access Algomi’s innovative bond information network on a global basis and exchange risk more efficiently by identifying the most appropriate counterparty.
The global Joint Venture also involves working closely with regional exchanges and other partners to deliver holistic market access. As part of this, Euronext is working to establish an Automated Trading System (“ATS”) in North America, while discussions are already under way in APAC.
Paul Humphrey
phumphrey@euronext.com
Tel: +44 (0) 207 076 0930
Nathalie Masset, Euronext
nmasset@euronext.com
Tel: +33 1 70 482 876
Euronext Membership
euronextmembership@euronext.com
IF20171215 - Synapse for opening production 18 Dec 2017
Euronext Synapse - List of Instruments
Euronext Synapse - Trading Fee Guide
Press release (Nov 2016): Euronext and Algomi launch a new trading facility to improve pan-European bond liquidity
Press release (March 2017): Euronext invests in Algomi and expands the Joint Venture globally
Press release (Oct 2017): BNY Mellon and HSBC team up with Algomi