IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, announced the successful launch of Creditex's odd lot auction (OLA) platform.
Introduced in May, the OLA platform is generating growing participation among broker-dealers that manage high-grade and high-yield corporate bonds.
The OLA platform was introduced by Creditex Securities Corp., a subsidiary of Creditex Group Inc. — a leader in interdealer trade execution for credit derivatives and a wholly owned subsidiary of ICE. More than 30 auctions have been completed to increase liquidity for odd lot fixed-income securities in a variety of industry sectors, such as automotive, telecommunications, and manufacturing. OLA provides participants with a simple method to set price parameters, match orders and trade multiple line items during regularly scheduled events.
"The OLA platform promotes focused and efficient trading activity in a concentrated timeframe," said Grant Biggar, President of Creditex Group Inc. "We are pleased to see the growing interest and the positive response from the industry."
Each auction contains on average more than 450 individual fixed-income line items, and focuses on a specific industry sector to maximize trade potential. Over 100 market participants have used the auction to efficiently reduce odd lot bond positions. The OLA platform allows participants to quickly upload hundreds of securities at once. Creditex Securities Corp. manages all functions including pre-auction set up, submissions, trading and settlement.
Acquired by ICE in 2008, Creditex Group Inc. is a leading innovator in the credit default swaps (CDS) execution markets with a hybrid model of voice and electronic execution. Creditex Group Inc. was the first interdealer broker to offer electronic CDS execution with the introduction of electronic CDS trading in Europe in 2004, and it has offered electronic trade matching services for North American CDS since 2009. Creditex Securities Corp. is a U.S. registered broker-dealer and ATS, and is supervised by FINRA.