Canadian banks to launch electronic bond trading platform

Canadian banks to launch electronic bond trading platform

Canada’s leading investment banks are collaborating on a joint venture initiative to provide an electronic trading network for Canadian bond and money market products.

Billed as the first multi-dealer electronic trading system in Canada CanDeal will launch Government of Canada Treasury bill and bond trading in Q4, 2001. CanDeal’s founding shareholders are BMO Nesbitt Burns, Basis100, CIBC World Markets, MoneyLine Network, National Bank Financial, RBC Dominion Securities, Scotia Capital and TD Securities.

US Treasury trading platform, TradeWeb is currently seeking regulatory approval to offer dealer-to-customer trading services in Canada.

"CanDeal’s electronic trading system will provide institutions with a real-time consolidated price feed that displays the best bid and offer, price and yield, from all participating dealers for each security. Clients will be able to simultaneously request trades with multiple dealers," says Jayson Horner, president and CEO of CanDeal. "In a market where prices and terms change frequently, CanDeal’s solution presents significant benefits in terms of price discovery, timely trade execution, cost savings, and reduced administration."

Basis100’s proprietary BasisXchange technology powers the CanDeal Trading System. BasisXchange is an Internet-driven Java solution that transparently links participating investment dealers with institutional clients. MoneyLine Networks will supply market data, advisory services and sales and marketing support. CanDeal clients will be able to monitor live best-price markets, submit trade requests to multiple dealers, and execute trades by selecting the most favourable dealer response.

Horner says that institutional investors will be offered the opportunity to discover the best possible price and execute at that level in a timely and efficient manner. "The current process of best-price discovery can take a minimum of 3 to 5 phone calls and up to several minutes," he says. "With CanDeal, clients will be able to complete a deal in seconds and be assured they received the best price possible from the investment dealer of their choice. CanDeal will dramatically increase efficiency and accuracy in the Canadian fixed income markets."

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