Deutsche Boerse has launched a bond liquidity data service in partnership with Clearstream in a bid to increase transparency in the fixed income market.
The tool will publish post-trade data in the “fragmented and non-transparent” European bond market where most transactions are completed over the counter.
The move is expected to help investors fairly evaluate their fixed-income and assets portfolios and measure the liquidity and systemic risk of bond issuers.
It also means investors can estimate the execution prices for secondary trades much more efficiently.
The service will aggregate the data from Clearstream’s International Central Securities Depository (ICSD) which processes close to 800,000 new issuances of international securities annually.
The introduction of the ICSD model in 2013 has been a key step in reducing fragmentation across the European ETF market by introducing a centralised ETF issuance process.
Alireza Dorfard, head of market data and services at Deutsche Boerse, said: “European trading in fixed-income instruments is highly fragmented and non-transparent, as most transactions are over the counter and different data is stored with different market participants.
“Our customers have a strong demand for high-quality data on fixed-income instrument prices and volumes. With this new offering, we further support them in making an informed assessment and decision.”
Guido Wille, head of Eurobonds business at Clearstream, added: “Being at the beginning and the end of the fixed-income value chain, we are uniquely positioned to provide comprehensive post-trade data, making the international bond market more transparent and thus more efficient.”
Last July, Clearstream said the firm was focusing on ETF product development to enhance its global ETF service.