Vega-Chi sets 7 February launch date for bond trading MTF

The Vega-Chi MTF is the first buy-side to buy-side electronic trading platform allowing institutional investors to trade directly with each other in a fully anonymous setting. With the ability to by-pass intermediaries, participants can achieve better price executions and access liquidity directly from each other. In addition, the Vega-Chi MTF provides full pre-trade and post-trade transparency and historical price information allowing portfolio managers and traders to make better informed decision. The trading system also includes a Block Trading facility which allows clients to anonymously negotiate larger trades with each other.
Vega-Chi already operates a successful similar trading platform for European convertible bonds with 65 participants. Both platforms utilise the same trading engine developed by Vega-Chi.
Constantinos Antoniades, Chief Executive Officer said "We are very pleased to bring buy-side to buy-side trading in the high yield and subordinated financial bond markets. We believe these markets are now ready for electronic trading and clients are much more aware and eager about the benefits of accessing liquidity directly from each other. The execution price savings to clients could be significant and we believe it will improve the current structure of these markets."
Nick Ashby, Head of High Yield at Vega-Chi said "The market response has been very strong. We have already signed a lot of clients and we expect participation to increase further shortly after our launch. Given the reduced capital commitment from investment banks and dealers, clients are very interested in trading in an alternative pool of liquidity which provides full anonymity and at the same time more transparency."