Euroclear launches new subscription-based fixed income liquidity data service

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Edwin De Pauw, head of data services and innovation at Euroclear.

International central securities depositary (ICSD) Euroclear has launched Euroclear LiquidityDrive, a new data service, offering in-depth liquidity analysis on all fixed income instruments settled within Euroclear. The data is made available through Euroclear’s application programming interface (API).

“We are in conversation with a number of providers including data vendors, trading platforms and providers of solutions to provide additional options to data users,” said Edwin De Pauw, head of data services and innovation at Euroclear. “We have extensively engaged with market participants to develop the service and have shared data samples with many firms including dealers, asset managers, data vendors, providers of analytics, platforms over the last six months.”

In 2019 Euroclear settled the equivalent of €837 trillion in securities transactions, and Euroclear LiquidityDrive covers more than 460,000 global corporate and government bonds. It combines executed trade settlement data with custody activity data, using the ISIN code and the Common code for instruments. The view on transactions settled in Euroclear provides total volume, transaction count, ticket size, settlement price, and type of counterparties.

The Euroclear LiquidityDrive service is agnostic of whether the instrument is traded via an electronic platform or voice traded and the subscription is open to all interested parties, irrespective of whether they are Euroclear settlement participants or not.

The new service could provide valuable insights into asset liquidity and volume fluctuations, enabling market participants to improve their research intelligence in the areas of pre and post trade analysis and reporting.

De Pauw said, “The launch of Euroclear LiquidityDrive reflects the way Euroclear looks at innovation. As a financial market infrastructure with a track record of providing high quality settlement services to the world’s leading financial institutions, we are well positioned to provide a value add solution to increase transparency and efficiency in the market. We have worked together with the industry to define the features of our new product and we are excited to help our clients unlock liquidity in global fixed income markets.”

Euroclear LiquidityDrive is part of Euroclear Information Solutions which houses all Euroclear’s data business lines.

The announcement on 19 January that the European Commission (EC) is pushing forward with a consolidated tape of European bond issuance and trading activity will add further interest to developments such as this, with many traders and investment managers eager to get better access to data in supporting their investment trading and risk decisions.

“At this stage this service relies on information managed by Euroclear in its role of CSD,” says De Pauw. “We are keeping abreast of the EC’s initiatives in the space.”

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