AllianceBernstein to Sell Bond-Traing Software to Algomi
May 15 2017 - 6:38PM
Dow Jones News
By Justin Baer
AllianceBernstein Holding LP agreed to sell its bond-trading
software platform to trading technology firm Algomi Ltd., the
companies said Monday.
Financial terms weren't disclosed, though AllianceBernstein will
receive a minority stake in privately held Algomi and a seat on its
board.
An AllianceBernstein spokesman said the agreement had nothing to
do with the recent ouster of Peter Kraus, the firm's chief
executive, and eight other directors. France's AXA SA, which
engineered the shake-up, owns a majority of the U.S. investment
firm.
The platform -- Automated Liquidity Filtering & Analytics,
or ALFA -- monitors electronic trading venues and alerts users when
there is activity on the bonds they're looking to buy or sell.
AllianceBernstein's top credit-trading executives, Jim Switzer and
Tim Morbelli, developed the system with a goal of making the money
manager a more efficient bond trader.
AllianceBernstein started using ALFA in 2015, and executives
have said it helped lower trading costs. It tracks venues that
trade government and corporate bonds, as well as mortgage- and
asset-backed securities.
AllianceBernstein executives said they figured other asset
managers would pay to use the platform but likely only if it
weren't owned by a competitor. Last year, the firm began to look
for an outside partner.
The firm's discussions with Algomi began last fall, according to
Stu Taylor, Algomi's chief executive.
T. Rowe Price Group Inc., Brown Brothers Harriman and BlueBay
Asset Management agreed to use the ALFA platform following its sale
to Algomi, the companies said.
Algomi was founded in 2012 and has more than 250 clients.
Algomi's trading tools include Honeycomb, which helps money
managers find buyers or sellers of bonds through a web of
information aggregated from banks and other dealers.
Write to Justin Baer at justin.baer@wsj.com
(END) Dow Jones Newswires
May 15, 2017 18:23 ET (22:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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