Overbond to integrate European fixed-income transaction data from Deutsche Börse into its AI-aggregated data feeds and automated bond trading


First published by Overbond

Overbond, the leading API-based credit trading automation and execution service in the global capital markets, and Deutsche Börse Market Data + Services (MD+S), have entered into an agreement relating to the recently launched Clearstream Bond Liquidity Data offering. The agreement will provide Overbond customers with market insights on instrument liquidity and trading activity through a fixed-income post-trade data set on Eurobonds settled by Clearstream.

In the fixed-income trading space, data gaps remain a challenge for efficient, profitable fixed income trading and automation. This is especially true in Europe, where transparency in fixed-income instruments hardly exists. Amidst this broad data gap, bond desks may use and aggregate any existing but incomplete data sources available in the market.

However, aggregating the available data into executable prices and liquidity measures requires sophisticated artificial intelligence (AI) and cloud-based processing. Most bond trading desks lack the resources and expertise to do this in-house. Overbond partners with the world’s largest exchanges and capital markets data providers to bring cloud-based AI aggregated data and automated trading solutions to fixed-income trading desks around the globe.

Through the partnership with Deutsche Börse and Clearstream, Overbond will gain access to settlement-level fixed-income transaction data derived from the 170 million transactions that Clearstream processes annually across 100 currencies and 60 domestic markets. As the bond market is an over-the-counter market and most bonds are still traded over the phone, the addition of settlement-layer records significantly supplements the data sourced from electronic platforms.

Overbond utilises six months of historical data to train its AI model, in order to generate pre-trade pricing and liquidity analytics. Combining Clearstream transaction data for European instruments with data from Overbond partners that provide binding quote data from all-to-all trading platforms will create the most robust European AI training data set available for the benefit of a better informed fixed-income trading in the EU.

“Complete and accurate data is a foundational tool for achieving consistent profitability in the bond markets. Incorporating Clearstream data into the training set for Overbond AI is a game-changer. It allows us to create a great tool for traders of European debt and enables them to automate up to 40% of their trades using Overbond,” said Vuk Magdelinic, CEO of Overbond.

“This partnership is a great milestone for the fixed-income industry as it combines our bond settlement data with Overbond’s AI and cloud-based technology,” said Alireza Dorfard, Head of Market Data + Services at Deutsche Börse. “It is in line with our ongoing efforts to collaborate with partners on providing state-of-the-art solutions in financial markets.”

“Being at the heart of the Eurobond market, Europe’s largest securities market, it is Clearstream’s mission to increase transparency and therefore efficiency for all participants. This partnership is a great step on this journey, providing the market with comprehensive, up-to-date and high-quality bond settlement data,” added Guido Wille, Head of Eurobonds Business at Clearstream.

Overbond AI will use this data set to generate a robust European fixed-income trading data set and enhance the precision of Overbond liquidity scoring, risk tiering and margin modeling―all of which will be available to Clearstream clients.

About Overbond 

Overbond is a developer of process-redefining, AI-driven data and analytics and trade automation solutions for the global fixed income markets. Overbond performs market surveillance, data aggregation and normalization, and deep AI quantitative observation on more than 100,000 corporate bonds and fixed income ETFs. Applying proprietary artificial intelligence 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. Clients of Toronto-based Overbond include global investment banks, broker-dealers, institutional investors, corporations and governments across the Americas, Europe and Asia. For more information, please visit www.overbond.com.