Euroclear, a provider of settlement services, announced this Wednesday that it is investing in Algomi. The firm’s data and information business, Euroclear Information Solutions (EIS), will make the investment in order to “improve Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term in the global fixed income market.”

How, this author wondered, will the investment in Algomi, a FinTech firm founded in 2012, achieve this goal? Well, according to the firm’s statement today, EIS clients will be able to use Algomi’s bond liquidity matching system.

This system enables users to make specific bond holdings information available anonymously. The firm’s data aggregation tool, Algomi ALFA, also allows users to access the Euronext Synapse Multilateral Trading Facility, a multilateral trading facility, and query those bonds and, if they so choose, to trade in them.

Fixed income liquidity increases

As a result of this, EIS’ clients can increase their trading opportunities and, one would imagine, transaction volumes. A corollary of this is that trading in illiquid fixed income securities, such as corporate and government bonds, will increase. This won’t just be the case for Euroclear markets but in the fixed income market as a whole.

EIS is not the first major player in the financial services industry to invest in Algomi. Earlier investors include Euronext, a Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term operator, AllianceBernstein, an asset manager, and S&P Global, an index provider.

Peter Golder, CEO of Euroclear Information Solutions commented: “Our investment in Algomi is driven by client demand to access untapped liquidity pools. This venture represents an opportunity to transform our data into an asset to increase transparency and provide a substantial boost for global fixed income markets.”