The Fixed Income landscape is changing and changing rapidly. Investors have historically bought and sold bonds through dealers. Given the new regulatory environment and a lower risk tolerance on the part of the dealers, it has become increasingly difficult for investors to buy and sell fixed income securities. Though demand has increased, the liquidity has dried up.
A surge in new bond sales has increased the size of the total market; however, the risk tolerance of the dealers has led to less appetite to handle such order flows. The result is a bond market which is flush with new securities, but stifled when it comes to pricing and trading these securities after the initial sale.
This regulatory framework and market dynamic is forcing the entire market to evolve away from the older and inefficient practices to a streamlined and more electronic future. The influx of investor flow and the lack of dealer interest, is enabling innovation in the form of Electronic Communication Networks (ECNs) and Alternative Trading Systems (ATS).
Expanding upon our vision of the electronification of all markets, not only developed ones, Marco Polo has created an ATS that provides transparency and efficiency to our foreign local brokers.
Our Market Access Product Suite (MAPS), is a fully functioning fixed income electronic trading platform, that provides foreign (non US based) broker dealers and institutions with firm and executable quotes for treasuries (on the run and off the run), as well as corporate debt.
Via our Liquidity Providers (LPs), Marco Polo is able to supply the global trading community with a source of liquidity that is generally not disseminated outside of the US. Most global institutions are held hostage to the quotes, as well as the spreads, of the top five global banks and as a result very rarely are offered the opportunity of better execution and price improvement.
Our goal is to even the playing field and ensure that all participants, no matter how small or large, are able to see the liquidity of non-bank LPs. With a community of 160 foreign brokers, hundreds of institutions, and representation in over 80 countries, MAPS will provide our clients with a unique global electronic Fixed Income Trading Solution. MAPS is robust, reliable, fast, and it offers all of these functions:
Furthermore, clients can leverage MAPS with a single Marco Polo Securities (MPS) account for direct fixed income trading.