Awards for Excellence 2015: Best financial technology innovation
Algomi, the non-bank, is driving innovation in the bond market, being both a disrupter and the enabler for banks.
Best financial technology innovation:
That Euromoney’s financial technology innovation award goes to a non-bank is somewhat telling of how the financial industry is adapting to technology. Algomi’s Honeycomb technology is a perfect example of where outside players are essential in driving innovation in the banking sector. By its very nature the service Honeycomb offers could not be developed by banks, and it is helping bond dealers move to the inevitable broker model that awaits them and bond buyers to deal with the new paradigm of illiquidity.
Honeycomb allows an investor to set up bank facilitated and permissioned access to discreet information on live and historic bond flows. Seventy-five buy-side firms have already signed up since the end of 2014, and chief executive Stu Taylor says 70 more are in the process of joining. On the sell side, 11 banks have agreed to run the software on their servers.
Honeycomb allows the asset manager to view banks’ movements around a bond it may be wishing to sell or buy.