KopenTech Launches Revolutionary KTX DirectBidding™ Offering to Enable Direct Peer-to-Peer CLO Trading
KopenTech, the online trading and analytics platform for structured products, announced today the launch of KTX DirectBidding™. DirectBidding™ is a trading protocol that allows buy-side investors to trade CLOs directly and anonymously with each other and to access buy-side and sell-side liquidity in a single trading session. This significant innovation for the CLO market streamlines communications and simplifies execution for investors while also offering low-cost settlement fees. Trading on the platform has commenced in June with the first buy-side to buy-side trade negotiated on the platform.
"The introduction of the Direct Bidding protocol will greatly improve the efficiency of CLO trading and have a profound, positive impact on the broader structured marketplace," said Jill Scalisi, Chief Engagement Officer for KopenTech. "Investors utilizing DirectBidding will have a competitive advantage when it comes to executing transactions thanks to their ability to efficiently access liquidity from hundreds of potential counterparties."
"We have created an intuitive, web-based platform that has enabled us to create a complete ecosystem of products for CLO investors and to allow for flexible trading protocols," said Anna Gryb, Head of Product at KopenTech. "Whereas in te past market participants have been forced to use outdated processes to participate in CLO auctions, now anyone in the world is capable of accessing our cloud-based KTX trading platform."
KopenTech's wholly owned subsidiary, KopenTech Capital Markets LLC (KCM), will act as the settlement agent and the firm has contracted with MIRAE Asset Securities (USA) Inc on a non-exclusive basis to provide trade clearing services.
"We're pleased to be working with KopenTech on this revolutionary innovation for the CLO industry," said James DeAlto, Head of Correspondent Clearing Services at Mirae Asset Securities USA Inc. "By providing investors with a cutting-edge alternative to the legacy process, KTX DirectBidding™ will increase market liquidity and greatly benefit the entire CLO ecosystem."
All bidding and negotiations on the platform are private, which ensures the confidentiality of investor bidding history. Only matched trades are visible to the settlement agent, KCM. KCM is not a market-maker in CLO securities which further ensures there are no conflicts of interest in its role of performing trade settlement services.
The launch of DirectBidding™ builds on KopenTech's strong momentum in its mission to use technology to enhance CLO trading. In January 2020, the firm launched its first BWIC Alternative Trading System with a trading protocol focused on digitizing CLO BWICs for sellers of securities. Shortly thereafter, the LiveBidding™ protocol was introduced to achieve faster-paced bidding, improved competition, and transparency.
KopenTech is a Los Angeles based financial technology company. KopenTech's wholly owned subsidiary, KopenTech Capital Markets LLC, is a FINRA-registered broker-dealer and licensed by the SEC to operate an ATS. KopenTech offers a web-based platform for refinancing of CLO liabilities, electronic trading, primary market surveillance and analytics. With 60+ employees around the world, KopenTech is dedicated to making all aspects of CLO trading better, smarter, and faster. For more information visit KopenTech.com.