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UK regulators approve Bondcube trading platform

9 October 2014

The Financial Conduct Authority confirmed Monday it has approved corporate bond trading platform Bondcube as a crossing network ahead of the service's launch in Europe next month.

Approval from the UK regulator comes as the company also looks to get the green light in the United States, amid a race against other competitors to establish a platform.

"There are as many as 30 new fixed-income trading initiatives vying for investor and user attention in the US and Europe," Bondcube CEO and founder Paul Reynolds told IFR.

"The key hurdles to overcome are a high-quality investor, appropriate regulation, a live system and launch."

Bondcube aims to discretely take indications of investor interest and then match buyers with sellers in a manner that limits their market risk.

It is just one of many various industry initiatives to have been launched over the past year.

The Wall Street Journal reported Monday that 12 dealers are grouping together to set up a one-stop destination for finding buyers and sellers in a project called Neptune.

Bondcube received some industry backing in February this year from Europe's largest exchanges operator, Deutsche Boerse, which bought a minority stake in the platform.

According to Reynolds, approval from US regulator Finra is on track but unlikely to happen before November.

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