Restoring Credit Liquidity

Liquidity in the fixed income market is ailing. DelphX offers a cure in the form of two utilities: QuotePxTM, a digital OTC communication network that streamlines trading interaction between dealers and investors, and MAV≡n®, a pre-trade benchmark pricing utility.

Quote Ticket

The Alarming New Normal

Conditions in the fixed income market have deteriorated since 2007. Primary dealer inventories of U.S. corporate bonds have dropped significantly, while the volume of outstanding issues has continued to increase to record levels. That’s having a significant impact on liquidity.

 

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At the heart of the problem, regulation and capital constraints have materially reduced the ability of dealers to hold inventory, draining their capacity to provide capital-based liquidity. This problem is compounded by the logistical limitations of traditional voice-based trading.

For investors, these limitations, coupled with the lack of a market-wide price-discovery resource, make it nearly impossible to definitively demonstrate best execution for fixed income transactions. And, they hamper the ability of dealers to efficiently intermediate liquidity by pairing customer transactions with other investor and inter-dealer trades.

In short, investors need a market facility that:

  • Provides a more efficient and less costly way of interacting with dealers.
  • Seamlessly automates their current OTC trading processes.
  • Maintains and enhances their market relationships.
  • Restores and promotes sustainable, on-demand credit liquidity.

 

The DelphX Difference

Guided by extensive input gathered from buy-side and sell-side market participants, DelphX has designed the first digital multi-dealer network for direct OTC negotiation of corporate bonds and other fixed income securities transactions. Through its confidential quote, RFQ, instant messaging and other recipient-specific communication features and options:

  • Investors gain access to market-wide price transparency and competing dealer quotes, intuitive trading tools, definitive best execution analytics and lower transaction costs.
  • Dealers gain access to the liquidity incentives and inventory resources they require to provide deep, on-demand liquidity.

DelphX delivers these features through two symbiotic utilities: QuotePx, a digital OTC communication network, and MAV≡n, a dynamic source of continuously updating benchmark pricing for liquid and illiquid fixed income securities integrated within the QuotePx network.

QuotePx Network

  • Charging no transaction fees, QuotePx enables simultaneous one-to-one, one-to-selected and one-to-all recipient-specific communication of dealer quotations, investor RFQs and instant digital messages among dealers and investors.
  • Definitive investor-specific best execution compliance services and documentation.
  • Caching of deployable inventory supply and capacity held by investors for dealer use in intermediating resilient future liquidity.

Learn More about QuotePx Network

MAV≡n Benchmark Pricing

  • Proprietary pricing utility that continuously forecasts the price at which each tracked security would currently trade, and records the historical accuracy of all prior forecasts at the time of each trade.
  • Benchmark valuations and indexes uniquely informed by all dealer quotes pending in the centralized Private Books of each QuotePx subscriber.

Learn More about MAV≡n Benchmark Pricing

Automating OTC Communication

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On behalf of DelphX, Greenwich Associates interviewed most of the top 20 corporate bond dealers to determine which features of an electronic dealer-investor communication network they would find most appealing.

Read Their Findings

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The Need for Real Time Corporate Bond Pricing

View how real time benchmark pricing in the corporate bond market can promote investor confidence and stimulate market liquidity.

Powering equitable and informed bond markets