TransFICC investment to deliver e-trading platform with trader desktop

Dan Barnes
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TransFICC, the specialist provider of low-latency connectivity and workflow services for fixed income and derivatives markets, has closed a Series A extension for US$17 million. Led by AlbionVC, all existing institutional shareholders took part in this investment round, which follows the original Series A for US$7.8 million, announced in April 2020.

TransFICC’s investors are AlbionVC, Citi, HSBC, Illuminate Financial, ING Ventures, and Main Incubator – the early stage CVC unit of Commerzbank Group.

The new investment will primarily be used to expand TransFICC’s engineering teams, to support additional venue connectivity and automated workflows in US rates and credit markets, including US treasuries, high yield, investment grade, interest rate swaps (IRS), repo, municipal bonds, mortgage back securities (MBS) and credit default swap (CDS) products. Additionally, new products will be developed, which includes a complete e-trading system, incorporating a trader desktop interface.
The investment will also fund new sales and customer support teams, aligned with an ambitious growth strategy and geographical expansion through new data centres in North America and Continental Europe.

TransFICC aims to resolve the issue of fragmentation in fixed income markets by providing banks and asset managers via its API technology. Its platform provides connectivity to multiple electronic trading venues while supporting a variety of workflows across fixed income products. TransFICC supports financial institutions in accessing their required e-trading venues, while trying to streamline technology requirements and reduce operational costs.

TransFICC’s clients include eight investment banks and two exchange groups.

Steve Toland, CEO, TransFICC.

“As banks and asset managers focus on automating trading workflows to deliver increased efficiency, TransFICC’s ‘One API’ has been implemented at some of the largest Fixed Income trading banks and Exchanges,” said Steve Toland, co-founder of TransFICC. “As we build on this success, we are very happy to have attracted additional investment from our existing shareholders, which will be used to expand our Engineering teams, develop new products, open new offices in New York and Brussels, and add to our salesforce.”

“We have already built a modern, robust and cost-effective alternative to legacy systems, but driven by client requirements we are expanding our product suite to deliver a full e-trading system, which will enable clients to also trade manually using our software,” said Tom McKee, co-Founder of TransFICC. “As we add more clients and automate more complex workflows it is also important that we continue to invest in our technology platform, to deliver fast and scalable technology, which keeps pace with microsecond price updates and provides an audit trail for Best Execution.”

“TransFICC’s one API for e-trading service has a huge opportunity to become the defacto standard API gateway between banks and trading venues. Our faith in the API’s superiority and future success is borne out by the eight banks and two Exchanges that are now using it, as well as the long pipeline of prospective clients,” said Cat McDonald, investor at AlbionVC who joins TransFICC’s Board. “We expect TransFICC’s service to continue outperforming against expectations, thereby confirming the industry-changing nature of what Steve and the team have created.”

“The market structure in Fixed Income is evolving rapidly, and trading firms need modern, simple and innovative technology solutions to automate their trading workflows and quickly connect with numerous venues. TransFICC has been leading the way in API translation and continues to develop new products in response to client demand,” said Jonathan Lofthouse, global head of markets technology at Citi.

“This additional investment will let TransFICC further extend its connectivity reach and build additional components of the electronic trading stack. Having new UI’s and tools will make it even easier for TransFICC’s clients to adopt their technology and we are very excited to be working with them,” said Seth Osher, global head of flow fixed income IT at HSBC.

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