Data, technology and market infrastructure provider Intercontinental Exchange has detailed the relaunch of its Risk Matching Auction (RMA) protocol.
RMA, initially launched in 2015, is an enhanced sweeps session-based protocol for dealer-to-dealer fixed income trading that is part of ICE Bonds’ suite of trading protocols, conducting multiple auctions weekly.
“The Sweeps protocol continues to be an important tool for dealers for additional liquidity and risk management,” ICE Bonds President Peter Borstelmann said. “It was clear there was demand for improvement in this space – room to deliver an even better product than what existed in the market today. With our relaunch, we’ve delivered a highly intuitive and easy to use platform that incorporates direct user feedback.”
Borstelmann said ICE is excited about the potential as the company continues to develop innovative market solutions.
Deploying ICE RMA, after traders upload their inventory of bonds, an ICE proprietary algorithm matches buyers and sellers of the same bond or list of bonds. The protocol leverages ICE’s Continuous Evaluated Pricing (CEP) to propose a pricing level for the bonds.
“Our broad offering across fixed income provides a range of services that our customers can use to gain more transparency into volatile markets,” ICE Fixed Income and Data Services President Amanda Hindlian said. “The RMA relaunch builds on our strengths in both execution and data to deliver a robust sweeps solution that helps manage risk exposure across fixed income portfolios.”