By Dennis Clemente
NEW YORK—Fintech meetups are becoming more popular in the city. Last April 27, New Finance hosted a meetup featuring Leo Efstathiou, founder and CEO at Finsight; Adam Murphy, founder and CEO at Empirasign Strategies and Ruby Saleh at Algomi at the new co-working space Rise.
Looking to help investment banks, Finsight offers recent and historical US ABS new issue pricing in a clean, standardized format that is reportedly easy to process and compare in addition to intuitive deal mapping, a way to search recent and historical new issue by company, issuer, sector and subsector.
“Finsight helps investment banks,” Estathiou said, drawing inspiration from Gordon Gecko’s quote, “The most valuable commodity I know of is information.
As an analogy, he cites how we end up spending more when we go to supermarkets when we should be buying only what we need. It’s time, he states, data is structured.
Empirasign may just be the closest thing to an indexable stock ticker that exists in the asset-backed market, if you are to believe Murphy of Empirasign. “We organize disorganized markets,” he said. “We index all trade color and dealer offerings in the structured products.” He pointed out how market data gets buried in emails.
Its value proposition is a formula: (source + clean + normalize) x market data; in real time, at that which should save you time. It offers market transparency, dealer level price talk, extensive historical trade database and 2015 index starts with over 98,000 bid lists.
Using its publicly available holdings data filed by mutual funds and insurance companies, it probabilistically deduces the seller of a BWIC. Its Probable Sellers feature computes these probabilities using the Ipreo Holdings Database.
Most of the time, Empirasign loads up client portfolios to its watch lists to find some easy trades off of BWIC matchers or offer sheet matchers. It cross-links sub-portfolios to one another to find trade opportunities among client base with its Cross Finder.
What makes it different from institutions that matching tools at the group level. Now it claims it can put put power in your hands.
Next presenter Algomi has grown fast since its inception in 2012 with more than 140 employees at offices located in London, New York and Hong Kong. Its growth reportedly stems from changing market conditions in the fixed income market, driven by regulation stipulating that banks can not warehouse fixed income risk on their balance sheets.
In the world of capital, leverage and liquidity requirements, Algomi leverages its relationships with salespeople, traders and investors to increase the opportunities and velocity in large and illiquid voice trades among banks, institutional investors, inter-dealer brokers and exchanges.