Overbond and IPC have announced a new partnership focused on accelerating the automation of fixed-income trading with voice-to-AI technology.
Overbond is teaming up with IPC, a provider of secure, compliant communications and multi-Cloud connectivity services for the international financial markets, in order to integrate IPC’s point-of-trade voice transaction data into Overbond’s AI algorithms “powering automated fixed-income trading.”
Overbond’s fixed-income AI pricing and liquidity algorithms “harness the industry’s deepest data stack, which now includes voice trades through the partnership with IPC, bringing exceptional precision to the automation of bond trades,” according to a release shared with CI.
Approximately one quarter or 25% of fixed income trades in the US as well as Europe are still being executed by voice, according to Vuk Magdelinic, CEO at Overbond. Vuk also noted that this heretofore uncaptured data was “a significant gap in AI-powered, automated fixed-income trading and modeling, and will be erased by Overbond’s strategic collaboration with IPC.”
Said Bob Santella, CEO at IPC, said that their partnership with Overbond “continues the digital transformation of fixed income trading by fully harnessing the power of voice data.”
Said Bob added:
“As a company, IPC embraces an open platform approach to reimagine how financial institutions everywhere trade, share information, and optimize workflows.”
IPC’s Dictation as a Service is an “industry-leading” Cloud-powered Natural Language Processing (NLP) that’s powered by IPC’s global Connexus Cloud financial ecosystem.
The service “enables traders to ‘dictate’ trade jargon and translate the output in real-time through IPC’s award-winning Blotter visualization application,” the announcement explained while adding that these tools offer a comprehensive end-user solution for “converting unstructured voice trade data into a searchable, exportable structured data format in real-time.”
Meanwhile, Overbond has been leading the way in addressing the data aggregation problems impacting automated trading of fixed income. Overbond’s COBI-Pricing LIVE is a “customizable” AI pricing engine that “assists traders in automating pricing and trading workflows for global investment-grade bonds, generating prices and liquidity scores for more than 100,000 fixed income instruments.”
As noted in a release:
“The full interoperability of COBI-Pricing LIVE via bilateral REST APIs allows its AI algorithms to ingest, aggregate and process data from live and historical vendor feeds, internal historical records, OTC settlement layer volume records, and now voice transactions.”
Overbond is a developer of “process-redefining, AI-driven data and analytics and trade automation solutions for the global fixed income markets,” the announcement noted while adding that the Overbond carries out market surveillance, data aggregation and normalization, and deep AI quantitative observation on over 100,000 corporate bonds and fixed income ETFs.
Applying proprietary AI to pricing, curve visualization, market liquidity, issuance propensity, new issuance spreads, default risk and automated reporting, Overbond “enables trade automation and enhances trade performance and portfolio returns.”
Customers of Toronto-headquartered Overbond reportedly include major investment banks, broker dealers, institutional investors, corporations and governments across the Americas, Europe and Asia.
As previously reported, IPC is a technology and service leader “powering the global financial markets.” They help clients “anticipate change and solve problems, setting the standard with industry expertise and … comprehensive technology.”
IPC brings together one of the “largest and most diverse” financial ecosystems that spans all asset classes and market participants. IPC aims to empower the community “to interact, transact and react to market changes and challenges, and [they] collaborate with [their] customers to help make them secure, productive, compliant, and connected.”