BondWave launching tool for comparing trades with counterparties

BondWave is launching what CEO Michael Ruvo called an "offensive tool" to measure total trade costs and compare them with those of its peers in the marketplace.

The new Transaction Quality Analysis solution (TQA) will compare the cost of a user's trade against a "peer benchmark, providing essential context into the true quality of their executions," according to a press release.

It will be a module within Effi ? the firm's fixed-income data warehouse platform ? which will "empower users to measure and rank the performance of their counterparties, ultimately leading to more favorable trading outcomes in the future," the release said.

The TQA will be priced based on trade volume and "fall largely in line" with the tier-pricing model used for other modules, Ruvo said in an interview.

The advantage of the tool is that, unlike other transaction analytics, it focuses on comparing the value of a trade to that of a counterparty, he said.

"Our traditional transaction analytics capability was really created based on a lot of regulatory and compliance drivers, primarily for markup, fair pricing, best execution capabilities," Ruvo said. "So, really a defensive tool."

The TQA module "takes those capabilities and makes more of an offensive tool, that allows you to assess not only the cost of your transaction, but the quality versus a relevant peer group," he said.

"Behind the scenes," BondWave has also recently completed an update to Effi's backend and user interface, Ruvo said. The press release announcing the TQA also touts other recent features, including a Fixed Income Analysis Report that checks whether CD holdings exceed the FDIC insurance limit and a new trade oversight details page.

In 2024, BondWave partnered with DPC Data to integrate several of DPC Data's products into BondWave's Effi platform. This allowed DPC Data subscribers to access content directly within Effi and provided Effi users with more information for all municipal bond positions in their portfolio.