Intercontinental Exchange’s Lynn Martin Walks JLN Through New ICE Portfolio Auction Platform

Lynn Martin - President of fixed income and data services at Intercontinental Exchange
John Lothian

John Lothian

Executive Chairman and CEO

Fixed-Income Trading Platform Automates Complex Portfolio Trading, Leverages ICE Data and Risk Management Tools

The world of bond trading is being swept into the electronic trading world and ICE has offered a new way to automate and make the trading of large portfolios of bonds easier. The ICE Portfolio Auction Platform leverages ICE data and risk management tools and creates an automated process for trading portfolios of bonds.

John Lothian News interviewed Lynn Martin, the president of fixed income and data services at Intercontinental Exchange, over Zoom about the exchange’s  new Portfolio Auction Platform and how it works.

Martin talks about how trading a bond portfolio worked in the past and the issues this new platform is trying to solve. She said the platform has seen trades with more than 1,500 line items of bonds.

As the supply of global debt has expanded, fixed-income portfolios have become more difficult and complex to manage, she said.

To improve efficiency, firms have moved to portfolio trading to transact the exchange of their  bonds. The ICE Portfolio Auction Platform helps firms seamlessly trade a portfolio of securities and get the exposure level and the specific bonds they want.

The platform’s all-or-none functionality makes sure you are getting what you want, she said. However, some asset managers are pressing the exchange to provide most-or-none functionality as well.

Trades can be made with real-time prices or end-of-day prices, which allows portfolio managers to mark their portfolios without slippage.

 Investment grade and emerging market corporate bonds are the ones most often traded on the platform, though some high-yield trades were recently transacted, she said.

Trades have occurred as small as a few million dollars worth of bonds to as much as three-quarters of a billion dollars so far, Martin said.

It is buy-side market participants who are initiating the trades, with sell-side and market-makers also on the platform, she said. 

One of the biggest advantages of the platform is that there is no limit on the number of line items in a portfolio that can be traded, something Martin said can be an issue at their competitors.

Updated technology, the ability to leverage ICE data, analytics and risk-management offerings, and automated workflow processes create value for customers who use the platform, she said.

Get more news from JLN at http://www.johnlothiannews.com. Follow us on Twitter at http://www.twitter.com/JohnLothian, http://www.twitter.com/MarketsWiki or http://www.twitter.com/JLNOptions. Follow JLN on LinkedIn at https://www.linkedin.com/company/236044/admin. Follow JLN on Facebook at https://www.facebook.com/johnlothiannews.

John Lothian Newsletter

Today’s Newsletter

Libor’s Final Days Begin With Push to Shake Up Swaps Market

Libor’s Final Days Begin With Push to Shake Up Swaps Market

First Read $51,906/$300,000 (17.3%) ++++ Hits & Takes John Lothian & JLN Staff The SEC issued an "Opinion of the Commission" on Monday in a case between ABN AMRO Chicago LLC and Chicago Board Options Exchange, Inc. and C2 Options Exchange, Inc. Here is a...

We visit more than 100 websites daily for financial news (Would YOU do that?)

Now Read This

Larry Abrams – Open Outcry Traders History Project – Part 1

Larry Abrams – Open Outcry Traders History Project – Part 1

Larry Abrams’ career started with a chance encounter on a ski lift which was prompted by a good deed. He and some friends helped to push a stranded car that was stuck during a blizzard in Park City, Utah. The next day on the lift line he was paired with the man whose car he had helped push out the night before, who happened to be an options market maker at the Cboe. By the time he got off the lift line, he knew that was what he wanted to do.

The Spread – July 23, 2021

The Spread – July 23, 2021

Volatility makes a return appearance as the Delta variant jangles nerves; Treasury bond yields perk up; July options expire; John Lothian chats with Cboe’s Ed Tilly about a World of Opportunity; UBS and SEC reach a settlement; FIA Tech expands; and the Options Institute’s Kevin Davitt explains why contract size matters in the “Term of the Week.”

Pin It on Pinterest

Share This Story