Trumid is transforming electronic credit trading with a real-time predictive bond pricing model, designed to enhance accuracy and pricing intelligence for the corporate bond market.
- 10x Increase in the rate of bond price updates compared to prior Trumid models
- 81% Of eligible Trumid RFQ line items executed “no touch” in Q4 2024
In the dynamic world of electronic credit trading, traders and portfolio managers require precise tools to efficiently analyze and interpret data for strategic decision-making.
Trumid, a financial technology company that has designed a leading fixed income electronic trading platform, aims to optimize the credit trading experience by combining agile technology and market expertise with a focus on product design.
Building a Real-Time Bond Pricing Model
As Trumid sought to set itself apart in a crowded financial marketplace, they were faced with the challenge of developing a reliable and objective, real-time bond pricing model.
The solution would help their clients to:
- Manage and process vast amounts of data, keeping pace with often unpredictable and complicated market dynamics
- Work effectively for less liquid securities with few or no trades
- Coherently adjust pricing to align with comparable securities and account for factors like broad market indices, interest rates, and credit spreads
In addition to accurate pricing, the system would also need to deliver comprehensive supplementary data including confidence scores, intervals, and bid-offer spreads. This additional detail would greatly help clients decide whether to rely on the model for automated trading or take a manual approach.
Read the full article here.