Perimeter launches basket trading in CBID marketplace

Date: Wednesday, June 9, 2010
Author: Investment Executive

Perimeter Markets Inc. is launching “basket trading” in the CBID marketplace, allowing users to execute multiple orders simultaneously against CBID’s electronic, multi-dealer fixed-income inventory.

With the addition of basket trading, the many execution, compliance and cost-efficiency benefits of CBID are now available to those responsible for trading fixed-income securities for discretionary managed portfolio and separately managed account wrap programs, Perimeter says.

“To date, the CBID marketplace has been focused on improving the fixed-income trading experience of investment advisors -- helping them deal more effectively and efficiently with individual client trades,” says Geoff Eby, president, Perimeter Markets Inc. “This new basket trading function opens up a very large and growing market segment for us, a segment that in many ways needs the benefits of CBID more than anyone else.”

“Discretionary managed portfolio and separately managed account wrap programs account for more than 10% of assets in the industry and are among the fastest-growing segments of the business,” says Lawrence McCann, Vice President, CBID. “As successful as they are at delivering professional money management services consistently to large numbers of individual clients, these programs present significant operational challenges to their sponsor firms. Nowhere is this more acute than in the fixed-income space.”

The basket trading function is being made available free upon request to all CBID subscriber firms.