Machine Learning Helps Traders Determine Real-Time Liquidity of Corporate Bonds

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Powered by AI, Trumid’s new Likelihood to Trade Score (LTS) allows traders to focus on the bonds that are likely to trade, helping drive more efficient execution

Trumid, an all-to-all electronic trading platform for corporate bonds, announced the launch of its proprietary Likelihood to Trade Score (LTS) today. The LTS provides a data-driven, bond-level, real-time measure of liquidity which guides traders to the bonds most likely to trade in the very near term. By combining data with technology, LTS supports Trumid’s goal of helping buyers and sellers easily navigate the often-opaque corporate bond market.

The Likelihood to Trade Score is powered by a machine learning model created by Trumid Labs, Trumid’s team of data scientists.  This mathematical model incorporates real-time information entered into the dark pool by Trumid users and is further informed by past performance of similar bonds. The LTS improves on prevailing liquidity measuring standards by incorporating real-time machine learning techniques that give traders an unprecedented real-time view into trading opportunities.

“Trumid LTS uses best-in-class technology to compute this likelihood to trade, so traders know which bonds have the greatest chance of trading on the Trumid platform, in real-time. The bottom line is the Trumid LTS helps unlock liquidity by taking a uniquely quantitative approach to facilitating execution,” said Mike Sobel, Trumid’s president.  

Traders on Trumid can follow a select list of bonds by adding them to their personal watch list. These inputs feed the proprietary machine learning model, which then produces values that help predict future behavior on the platform. The LTS informs users which instruments are most likely to trade by dynamically sorting them with a higher priority in users’ watch lists. By focusing trader attention in the moments prior to an expected increase in executable liquidity, LTS is expected to improve execution efficiency.

LTS was developed by Trumid’s team of data scientists, known as Trumid Labs.  This team of scientists, developers and engineers use their diverse backgrounds to apply creative solutions to address the needs of corporate bond traders.  

“Trumid’s extensive user network provides a wealth of data.  The professionals in Trumid Labs focus on that rich information set and use techniques more commonly applied in other, non-financial disciplines,” commented Mike Sobel.  “Cutting-edge data science allows us to enhance the traditional liquidity model most trading has been built on.”

About Trumid

Trumid is an all-to-all electronic trading platform designed to make corporate bond trading easier. The company was founded in 2014 by credit professionals with over 100 years of combined trading experience and is headquartered in New York City. With total trade volumes of over $7 billion since inception, Trumid offers anonymous and efficient trading with low transaction costs. The fintech start up recently launched Trumid Market Center, allowing its users to access liquidity on the platform on their own terms. The Trumid platform currently supports trading in investment grade, high yield and distressed corporate bonds. Trumid was recently named one of Forbes’ Fintech 50 for 2016. Find us at: http://www.trumid.com

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Raanan Loew
Trumid
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