MarketAxess Holdings, operator of an electronic trading platform for US and European bonds, has been awarded a US patent for its electronic request-for-quotation method and system for client-to-multi-dealer trading of debt securities on a secondary market.
This is the second patent granted to MarketAxess, which earlier this year received a patent for its electronic bid and offer list functionality.
The RFQ patent protects the MarketAxess technology that enables investors to access liquidity from multiple dealers on a single trading platform.
The system simplifies the traditional phone trade process by allowing the investor to: electronically submit inquiries to dealers of the investor's choice; consider all dealer offers concurrently by placing dealers' responses in a "holding bin" for simultaneous release at a time specified by the investor; and select which dealer to trade with for a given issue.
The patent also covers MarketAxess technology that enables multi-dealer inventory of issues made available to investors on a secondary trading market in a searchable format. In addition, dealers can post live bid and offer terms for actively traded issues that are updated in real-time, also known as the Actives page on the trading system.
"This patent award underscores MarketAxess' leadership and innovative role in the fast-evolving global electronic credit markets," says Richard M. McVey (pictured), chairman and chief executive officer. "We continue to develop and introduce a range of capabilities designed to help our dealer and investor clients improve trade execution, efficiency and transparency in the corporate bond and CDS space. Our recent patent awards create valuable long term assets for our shareholders."