Internal Optimization provides the infrastructure for institutional traders to systematically cross trade, with built-in compliance features. Traders can source liquidity from within their own institution and save explicit, implicit and operational cost.
Without Internal Optimization
Institutional traders face a costly process to move a security from one fund to another, limiting their ability to source liquidity from within their own complex and raising the overall cost of trading.
With Internal Optimization
Institutional traders source liquidity from internal ﬂow, saving time and cost.
BondCross is Rialto’s proprietary crossing network. Secure, anonymous, and dark, traders can upload portfolios across fixed income asset classes without fear of information leakage. Portfolio constraints can be applied to ensure cash or sector neutrality on executions. Executions occur at midpoint of the bid-ask spread, providing price improvement to the Rialto community. Scheduled BondCross matches occur 3 times a day.
Institutional traders fail to directly access external liquidity incurring opportunity cost and suﬀering information leakage.
Institutional traders ﬁnd external liquidity in the market securely and anonymously, minimizing market impact and risk of information leakage.
Seeker provides real-time search opportunities for appropriate issues replacement. Most traders need to buy a type of issue rather than a specific issue. Traders can assign parameters to the search and, thereby, mine all issues to find replacement options. RialtoBot, our in-house automated sales trader, applies machine learning to the process and automatically provides the best option from our available network.
Institutional traders limit liquidity sources to exact matches, eliminating close substitutes which may be acceptable.
Institutional traders become their own virtual sales trader, mining data for alternative liquidity and identifying alternative matches which meet speciﬁc criteria.
Internal Optimization, BondCross and Seeker combine increasing efficiency and allowing clients to place block orders anonymously, advertise their interest to appropriate counterparties without delivering side, size, or strategy, and simultaneously mine a vast database for alternative liquidity sources to fulfill their needs. Trading fixed income has never been easier.
1. Increase Performance
Rialto’s suite of products saves explicit and implicit costs. Rialto’s proprietary independently observable price enables crossing at a fraction of the cost; trades are struck at mid-point pricing, giving clients price improvement over a bid-ask model. Rialto never discloses information to third parties and clients control their information. This combination of data protection and anonymous trading reduces market impact.
2. Increase Liquidity
Rialto delivers additional pools of liquidity from within the four walls of a client’s institution by crossing internal orders, through external liquidity by anonymously interacting with real and sizable liquidity, and via substitution by mining data to search for alternative liquidity.
3. Implement Easily
Rialto integrates easily into your electronic trading system and workflow, offering immediate access to features including pre-trade analytics, cross trading, data mining, compliance and reporting. Whether traders use FIX API or an HTML5 interface, Rialto installs quickly with built-in compliance and reporting.