21 October 2014

Deutsche Bourse acquires stake in fixed income platform Bondcube

12 February 2014  |  3438 views  |  0 Stock exchange close up numbers 1

Deutsche Börse has acquired a minority stake in fixed income liquidity discovery start-up Bondcube.

London and Boston-based Bondcube is as an electronic platform for large, market-sensitive bond orders that are typically executed via the telephone. The firm uses trading protocols from other markets, such as equities, to optimise liquidity discovery in a marketplace open to both buy and sell-side participants.

Paul Reynolds, CEO of Bondcube - and a former Deutsche bank and UBS exec - says: "The perception of a lack of liquidity in the bond market arises because the existing trading infrastructure protocol means the buy-side can only request liquidity from the sell-side. To solve this problem Bondcube enables all users, whether buy-side or sell-side, to discover liquidity amongst each other, known as 'all to all'."

Deutsche Börse says its stake in the business was acquired for a "low sum in the single digit millions (GBP)".

Johannes Weßling, responsible for bonds trading at Deutsche Börse, says: "Through this exciting move Deutsche Börse enlarges its client reach with direct access to the buy side whilst offering unique benefits to the sell side with no disintermediary effect."

Bondcube has commenced signing-up customers and forecasts that clients will be trading with each other in the 3rd quarter of 2014.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

29 October, 2013
11 October, 2013
30 September, 2013
18 July, 2013
02 July, 2013
07 May, 2013

Related company news

 

Featured job

£Six figure package
Central London

Find your next job