Intercontinental Exchange has integrated its fixed-income trading platform ICE Bonds with BlackRock’s Aladdin risk management platform.
Investment managers can now avail the ICE Bonds’ Portfolio Auction feature – an execution protocol designed to support portfolio trading.
With ICE Bonds’ Portfolio Auction, one can auction a bonds portfolio on “an all-or-nothing basis” to one or many participants.
Portfolios can include any number of bonds. They can be all buys or sells or a blend of the two.
One can participate in at-the-market or at-the-close trading session formats. Traders can utilise ICE Data Services’ continuous evaluated pricing or end-of-day assessments.
Aladdin lowers operational risk for those using the Portfolio Auction functionality.
ICE Bonds president Marshall Nicholson said “By bringing this protocol together with our ICE Data Services’ Continuous Evaluated Prices, portfolio managers can execute as close as possible to NAV prices, significantly reducing tracking errors against benchmarks.
“The addition of this auction protocol to ICE Bonds’ existing RFQ and Central Order Book protocols will give traders a more efficient method to buy or sell a basket of bonds, which compliments the workflow of the ICE ETF Hub, our innovative, open architecture solution supporting the primary market for ETF trading.”
BlackRock’s Aladdin recently integrated with investment software provider eFront following BlackRock’s acquisition of the latter in 2019.
Moreover, last year, the data insights, accounting, and servicing tools of BNY Mellon were integrated into BlackRock’s Aladdin platform.