Global exchanges operator and clearing houses, Intercontinental Exchange, Inc. (NYSE:ICE) announced yesterday the completion of ICE Bonds integration with the investment operating system BlackRock’s Aladdin. ICE now offers its customers access to ICE Bonds’ Portfolio Auction functionality, an automated execution protocol for portfolio trading.
The new functionality allows investment managers to auction a portfolio of bonds on all-or-nothing basis to platform participants in a pre-defined period. The portfolio may include all buy, all sell bonds, or a combination. Two trading session formats are available at the Portfolio Auction – At-the-Market or At-the-Close with leverage of either ICE Data Services’ Continuous Evaluated Pricing (CEP) or End-of-Day Evaluations. The addition Blackrock’s Aladdin reduces operational risk and increases workflow efficiencies.
Marshall Nicholson, President of ICE Bonds, stated:
In the past, portfolio trading has largely been a manual process, with no standardization, which is time consuming for all participants. 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.