EURONEXT SYNAPSE

POWERED BY ALGOMI

Euronext Synapse brochure Euronext Synapse.pdf PDF 3.82 MB Download

Euronext has created an anonymous centralized inter-dealer marketplace, a new secure ecosystem connecting pools of liquidity through a network of interconnected banks.

  • An MTF operated by a neutral and independent market operator and powered by Algomi

  • Increase trade opportunities and velocity for block trades of illiquid corporate and financial bonds to address the key liquidity challenge faced by the fixed income market.

  • Creates massive network effects

Your customers can send their indications of interest to you, as their chosen dealer, for you to execute what you can in your own pool of liquidity.

If this cannot be achieved you can now connect to Euronext Synapse to access new liquidity.

  • A market responsive solution that adapts to the changing world

  • A powerful liquidity and counterparty finding tool

  • Complete protection of buy and sell side interests to trade illiquid bonds

  • Turn disparate data into relevant and structured information

  • A solution that’s easy to deploy

  • Existing network of banks using Algomi’s Synchronicity and buy-side customers using Algomi’s Honeycomb network

Euronext Synapse ecosystem

As a bank, you benefit from Euronext’s experience in operating fair and orderly markets combined with Algomi’s innovation and award winning technology.

  • Euronext’s standard set of services

  • Membership - Fast track process is available for Euronext members

  • Market surveillance

  • Publication and reporting

  • MiFID II compliance - No pre-trade transparency, and post-trade transparency in line with MiFID II Large in Scale post-trade waiver

  • Euronext is the FCA regulated MTF operator, Algomi is the MTF technical service provider.

THE AUCTION PROCESS

  1. The MTF knows precisely which banks to invite into an auction to trade
  2. The MTF scans IOIs and inquiries (current and historic) as well as trades then proposes potential counterparties to join an auction on the same bond
  3. The best opposite side is selected and the two members anonymously negotiate the price
  4. After the initial auction both members can agree to trade any additional quantity
  5. Other members with active/historical IOIs are then invited to trade at the executed price
  6. Names are given up after trading to perform bilateral settlement