FILS 2021: Overbond adds pre-trade streaming API for TCA into EMS automation suite

Dan Barnes

Overbond, a provider of AI analytics and trade automation for the global fixed income markets, has added pre-trade and post-trade transaction cost analysis (TCA) to its execution management system (EMS) automation suite of AI fixed income trading tools. This new Overbond TCA, which it notes operates in real-time, relies on the platform’s data aggregation, API interoperability and refresh rate.

Vuk Magdelinic, CEO, Overbond.

“TCA has traditionally been a post-trade exercise, but Overbond has brought it to pre-trade LIVE. Overbond AI refreshes the entire TCA look-back every two seconds for client books that can have tens of thousands of trades, so traders can be confident that they have the most complete real-time information available on best-executable pricing, liquidity risk and transaction cost, and can smart order route in the price-size chunks necessary. No other TCA tool available combines the breadth of data aggregation, API interoperability and speed like Overbond AI,” said Vuk Magdelinic, CEO of Overbond.

Overbond COBI-Pricing LIVE features a multi-source data input and is designed to allow for cross-venue, cross-trading-protocol liquidity discovery and optimisation. The full interoperability of COBI-Pricing LIVE via bilateral REST APIs should help AI algorithms to ingest, aggregate and process data from live and historical vendor feeds, internal historical records of executed trades, post-trade volume and liquidity data and voice/chat OTC transactions translation data.

The TCA looks back through OMS records and blotters from past transactions for similar bonds (ISIN/CUSIP), looking at multiple variables including risk, liquidity, size, counterparty, RFQ competitiveness and dealer quotes and inventories.

Overbond AI aggregates the data, determines best executable pricing and liquidity and supports TCA pre-trade LIVE recommendations and post-trade reports.

©Markets Media Europe, 2021