Vega-Chi's new high-yield trading platform for institutional investors

By Jennifer Chiou

New York, Oct. 24 - Vega-Chi US Ltd. announced the launch of its high-yield bond trading platform solely for institutional investors.

The company stated in a release that its unique and innovative electronic marketplace is initially being supported by over 40 buyside participants. More than 60 firms are in the pipeline to join within the first few months of trading.

Vega-Chi noted that the platform is currently focused on high-yield and distressed securities only.

The trading platform offers institutional investors the ability to trade directly with each other in an exchange-like electronic setting without the need for intermediation by a broker-dealer, allowing better pricing for the buyside community.

Vega-Chi stated that demand from institutional investors for more efficient trading comes at a time when dealers are facing unprecedented changes to their traditional business models and, as a result, are less able to provide the levels of liquidity and capital commitment that buyside firms require.

"For the first time, the buyside has an interface to trade freely with each other, directly matching orders with others in the institutional investment community," chief executive officer Constantinos Antoniades said in the release.

"This provides a compelling, cost-effective alternative to the dealer-to-client market structure, which has for so long been the only option available for market participants."

The trading system is available to institutional investors only and has no upfront or ongoing costs for use. Participants are charged a fee ranging from 3 cents to 6.25 bond cents each time they execute a trade on the platform.

Questions may be directed to Simon Hylson-Smith (shs@paragonpr.com or 646 558-6226).

London-based Vega-Chi is focused on developing and operating electronic markets for high-yield and convertible bond trading.

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