Euronext Synapse

Award-winning technology

Award-winning technology

AlgomiEuronext 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:

 
Find new ways to access
and amalgamate liquidity

 
Provide cost efficient
trading processes

 
Efficiently
search for potential counterparties

 
Be MiFID II Compliant

Key principles and unique features

  • Euronext is the MTF operator, Algomi is the MTF technical service provider.
  • At launch, the focus is on large sizes of illiquid corporate and financial bonds to benefit from the MiFID II Large in Scale (LIS) waiver.
  • No pre-trade transparency, and post-trade transparency in line with MiFID II LIS post-trade waiver.
  • A straightforward and confidential trading process
  • The model includes features covering the whole value chain:
    • For customers to send their indications of interest to their respective bank that will execute what can be internalised in their own pool of liquidity.
    • For banks to flag their active ISINs and send to Euronext Synapse IOI flows that cannot be internalised.
    • Euronext Synapse scan IOI inventories and data signals  to all connected participants and propose potential counterparties to join an auction on the same bond.
    • With different types of auctions (bilateral, private, public) always held in a fully confidential and anonymous environment.
    • With a secured bilateral negotiation and execution process – and a name give up after matching to perform bilateral settlement.
  • The model also includes Euronext’s standard set of services: membership, market surveillance, publication and reporting, MiFID II compliance.
  • FCA regulated MTF.
  • Fast track membership process is available for Euronext members.

Euronext Synapse trading process

What Euronext Synapse can do for you

Euronext Synapse with Synchronicity SaaS

Why connect to Euronext Synapse with Synchronicity SaaS?

Euronext and Algomi joint venture

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. 

More information & contacts

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 

Mark Ledwards, Algomi
mark.ledwards@algomi.com
Tel: +44 20 7954 4592