Euroclear and Lyxor Asset Management collaborate to bring greater transparency to fixed income liquidity

Euroclear and Lyxor Asset Management are cooperating in the launch of “e-Data Liquidity,” an innovative tool enabling fixed income market participants a method of accessing the true intrinsic liquidity of an asset, therefore providing the full liquidity profile.

Against the backdrop of increasing regulatory requirements, accurately monitoring the liquidity of an asset plays a key role in helping investors adequately price assets and allocate their funds. Measuring liquidity can prove particularly challenging for fixed income securities, which mainly operate over-the-counter and offer less transparency by nature than other markets.

Stephan Pouyat, Global Head of Funds and Capital Markets at Euroclear said: “The current market climate is prompting investment managers, treasurers, risk managers, insurers, collateral takers, central counterparties and other buy-side institutions to better manage their asset portfolios and strengthen their balance sheets, including liquidity buffers. e-Data is a modular tool and the liquidity module provides key indicators founded on our neutral settlement data and presented in its simplest form, relying on the infrastructure stamp of Euroclear. This first module, designed in close collaboration with Lyxor, focuses on supporting the management of fixed income and more specifically high quality liquid assets.”

Jean Sayegh, Co-Head of Sovereign Bonds Investments, Lyxor Asset Management added: “Lyxor has always helped its clients understand and adjust to a rapidly changing environment. By teaming up with Euroclear we are participating in the current regulatory drive for market transparency and providing fixed income investors with an innovative tool helping them better manage their portfolios. This partnership leverages on our expertise as an innovative fixed income asset manager and the value created for our clients by exploiting the depth of Euroclear data.”