Insights
Eugene Grinberg, New York-based co-founder and chief executive of SOLVE, visited Australia around his firm’s sponsorship of the KangaNews Debt Capital Market Summit in March. Grinberg talked to KangaNews about how SOLVE’s offering is helping investors and dealers make sense of the deluge of pricing signals they receive and send to help promote price transparency even in some of global fixed income’s most illiquid and opaque asset classes.
The SOLVE offering is not trying to change how market participants trade – it is not a trading platform – but aims to maximise the value of trade-related data, like the abundance of price quotes, which typically are not used systematically. What is the value proposition for a buy- or sell-side user?
Ultimately, at the highest level, the value proposition is the same for both sides: it is about adding pre-trade price transparency to illiquid markets, allowing users to save time researching price points and reducing the risk of information asymmetry. These value propositions are universal.
But the nuances are slightly different, depending on the user. This is because there is an information asymmetry: the buy side is slammed with messages from dealers, which is often too much data to manage in any meaningful way. The sell side, meanwhile, is expected to provide market colour to the buy side – but it is often blind to what the rest of the street is doing.
For the buy side, part of day-to-day life is receiving lots of messages from trading counterparties – often many thousands of them, and some of our clients are receiving hundreds of thousands each day. This is an overwhelming amount of information that clearly they are not able to consume in any meaningful fashion, because it is all unstructured.
Our solution organizes quotes and market color sourced from your firm’s messages or crowd-sourced from SOLVE’s network of buy- and sell-side contributors. The resulting unparalleled access to real-time quotes, allows you to save inordinate time in researching individual securities or larger trends in the market and gives you confidence that you are executing or pricing securities at correct levels.
Hundreds of institutions rely on SOLVE to perform new issue pricing analyses, identify primary and secondary trade opportunities, monitor market activity, value fixed income positions, and comply with securities regulations. Start your free trial now!
