Euronext has been acquiring majority and minority stakes in fintech businesses in an effort to diversify in order to become less reliant on trading stocks and bonds. They are following rival companies like Bats Global Markets and Deutsche Börse.
Large companies are diversifying in the masses because of events like the 2008 market collapse and Britain´s exit of the European Union. These events cause much uncertainty and we have seen huge institutions fall as a result of these kinds of events.
Algomi: a leading start-up in the fintech community
Algomi is a software company that specialises in developing software to make trading stocks and shares more efficient and profitable. Their products have won many awards since the company´s inception in 2012 for their innovative and high quality products.
Algomi is often reported about in the news. Algomi have multiple products on the market designed for a variety of traders. They help traders participate in electronic bond trading, a type of trading that has been very exciting but for many, not personal enough compared with traditional phone-based trading.
Euronext and Algomi: news to keep up to date with
Euronext´s aim with the investment in Algomi is to develop a multilateral trading facility, or MTF for short. An MTF is basically a digital trading venue. The idea is to connect multiple traders in a different, more modern way, allowing for new and exciting trade opportunities. The program will make pan-European corporate bond trading a whole new experience.
Algomi plans that their new technology named Euronext Synapse will link with their other software together, providing valuable information to both buy- and sell-side traders.
Algomi´s software will be fully internally developed. An exchange-grade bond matching solution to provide the functionality needed for algorithmic smart matching, in order to create an auction between dealers. If a bank is not able to match an order from the buy-side trader, it will get sent to the separate inter-dealer exchange where a more collaborative approach can be used to find the other portion of the deal.