Citi has made a strategic minority funding in Greenwich-based fintech, Cicada Applied sciences (CT), to facilitate institutional e-trading of Mexican executive bonds.
Citi’s Markets Strategic Investments unit treated the funding, with Citi set to behave as a liquidity supplier for the buying and selling platform. Citi joins present traders Kaszek Ventures, Dila Capital and BCP Securities.
With further presence in Mexico, Cicada has constructed an all-to-all digital choice buying and selling device (ATS) permitting institutional buy- and sell-side contributors to commerce Mexican executive constant source of revenue securities with out the desire of a pre-existing buying and selling courting.
The ATS is registered with the SEC and the broker-dealer actions of Cicada Securities – a subsidiary of CT – are regulated via FINRA.
Cicada allows the e-trading of 28 Mexican executive bonds, together with: nominal fixed-rate notes (Mbonos) and inflation-linked securities (UDIBonos) which can also be settled at Indeval, Euroclear or Clearstream.
Going ahead, the corporate plans to permit the buying and selling of Cetes (Mexican T-bills), TIIE (Mexican rate of interest swaps), Mexican company bonds and different rising markets executive securities.
With an estimated 85% of native bonds traded via voice and OTC by the use of conventional non-electronic agents, Cicada targets to permit generation adoption amongst marketplace contributors emigrate those volumes to e-trading.
“As a number one liquidity supplier within the Mexican executive bond marketplace, our participation in Cicada’s platform displays our ambition to be at the vanguard of digital buying and selling,” mentioned Jose Luis Yepez, head of native markets charges buying and selling at Citi.
Cicada plans to hurry the adoption of e-trading by the use of a central prohibit order ebook (CLOB) and request for quotes (RFQ) protocols.
The platform additionally supplies automation gear for buy-side and liquidity suppliers, execution of trades, connectivity to post-trade services and products and information research of are living and ancient bond costs.
“Investors are embracing generation temporarily, and lately 15 well known establishments are energetic at the platform and 10 are within the strategy of becoming a member of,” mentioned Ignacio Tovar, co-founder of Cicada.
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