Overbond, a provider of AI analytics and trade automation solutions for the global fixed income markets, has partnered with TMX Group, an operator of global markets and provider of market data and analytic solutions, to integrate CDS FIPS settlement-layer Canadian bond data into Overbond AI fixed income trading tools and analytics.
This integration directly addresses the data challenges facing Canadian asset managers when they are pricing Canadian bond portfolios, structuring and rebalancing new portfolios, and seeking to construct and use pricing and liquidity time series.
The Overbond-TMX partnership gives both Overbond and CDS FIPS users access to the deepest coverage of Canadian fixed income trade data, provides for enhanced pre-trade and post-trade analytics and enables more accurate best-executable pricing and liquidity discovery for Canadian bonds.
CDS FIPS combines executed trade settlement data with custody activity data from both electronic and voice trades (OTC trades) to provide the only available complete daily volume information on Canadian fixed income trades reported to CDS Clearing and Depository Services Inc. The service covers more than 40,000 Canadian corporate and government bonds.
Integrating OTC trade volumes into Overbond AI models enhances the precision of bond liquidity scoring and best executable pricing. CDS FIPS enriched data enables more accurate measurement of the traded volume of Canadian dollar denominated OTC trades — data that is otherwise not found in any other electronic venue data feed or composite pricing data feed.
“Adding settlement layer data to Overbond AI models is the next frontier in data aggregation necessary for discovering best-executable pricing and liquidity in the Canadian corporate bond market," said Vuk Magdelinic, CEO of Overbond.
The CDS FIPS data enhancement is only the start of the added value that will come from the Overbond-TMX partnership because Overbond technology is scalable and adaptable to other asset classes.
“We expect that TMX and Overbond will enable additional AI-driven data and analytics tools for use by asset managers, buy-side and sell-side traders, analysts, compliance departments and back offices across multiple asset classes,” said Michelle Tran, President of TMX Datalinx.