Citi Makes Strategic Investment in Cicada to Facilitate Institutional e-Trading of Mexican Government Bonds
Citi has made a strategic investment in Cicada Technologies Inc. to facilitate institutional e-trading of Mexican government bonds. Cicada's innovative all-to-all trading system allows global institutional market participants to trade Mexican government bonds without a pre-existing relationship. Citi will act as a liquidity provider for the trading platform, aiming to increase electronification in the Mexican fixed income market.
Citi's strategic minority investment in Cicada aims to enhance the efficiency of the Mexican fixed income market.
The innovative all-to-all electronic alternative trading system developed by Cicada allows for easier trading of Mexican government bonds.
The partnership between Citi and Cicada has the potential to drive technology adoption and innovation in the market.
The Mexican fixed income market is currently lagging behind in electronification compared to other asset classes, posing a challenge for Cicada's goal of migrating volumes to e-trading.
At least 85% of local bonds in Mexico are still traded via traditional non-electronic brokers, indicating a slow adoption rate of technology in the market.
- Cicada has built an innovative all-to-all electronic alternative trading system for global institutional market participants that trade Mexican government bonds.
- Citi has made a strategic minority investment in Cicada and will act as a liquidity-provider for the trading platform.
The investment was made by Citi’s Markets Strategic Investments unit, which is responsible for the sourcing and execution of strategic investments relevant to Citi’s Markets franchise. Citi will also act as a liquidity-provider for the trading platform.
Cicada is a fintech based in
Cicada has built an innovative all-to-all electronic alternative trading system (ATS) that helps global institutional buy-side and sell-side market participants trade Mexican Government fixed-income securities without the need of a pre-existing trading relationship. The ATS is registered with the SEC and the broker-dealer activities of Cicada Securities LLC (a subsidiary of Cicada technologies Inc.) are regulated by FINRA.
Cicada enables the e-trading of 28 Mexican government bonds, including: nominal fixed-rate notes (Mbonos) and inflation-linked securities (UDIBonos) that can settle in Indeval, Euroclear or Clearstream. The company is also looking to enable the trading of Cetes (Mexican T-bills), TIIE (Mexican interest rate swaps), Mexican corporate bonds and other emerging markets government securities.
The size of the Mexican fixed income market is about
Jose Luis Yepez, Head of Local Markets Rates Trading at Citi, said: “As a leading liquidity provider in the Mexican government bond market, our participation in Cicada’s platform reflects our ambition to be at the forefront of electronic trading.”
Cicada aims to speed the adoption of e-trading via a Central Limit Order Book (CLOB) and Request for Quotes (RFQ) protocols. The platform also offers automation tools for buy-side and liquidity providers, efficient execution of trades, connectivity to post-trade services and data analysis of live and historical bond prices.
Ignacio Tovar, co-founder of Cicada said “Traders are embracing technology quickly, and currently 15 well-known institutions are active on the platform and 10 are in the process of joining. Since launching last year, the trading volume on the platform has grown 15 times.”
“We are excited to invest in Cicada. The technology of the trading platform together with Citi’s partnership has the potential to enhance the efficiency of the multi-billion-dollar Mexican fixed income market,” said Aldo Alvarez, LatAm Lead at Citi’s Markets Strategic Investments unit.
Through investments in start-ups and early-stage companies, MSI promotes the development and adoption of new technologies, market structure and solutions to drive innovation.
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of
Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
About Cicada
Cicada Technologies, Inc. is a financial technology firm that develops and operates electronic trading solutions for global institutional clients. In 2022, Cicada launched an innovative all-to-all electronic alternative trading system (ATS) that helps global institutional buy-side and sell-side market participants trade Mexican Government fixed-income securities among each other without the need of a pre-existing trading relationship. The ATS is registered with the SEC and broker-dealer activities of Cicada Securities LLC (a subsidiary of Cicada technologies Inc.) are regulated by FINRA.
Additional information may be found at www.cicada.io | LinkedIn: www.linkedin.com/company/hellocicada/mycompany/
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508325267/en/
Media
Citi
Rekha Jogia-Soni
Rekha.JogiaSoni@citi.com
Cicada
Ignacio Tovar
Ignacio.tovar@cicada.io
Javier Hernández
Javier.Hernandez@cicada.io
Source: Citi
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