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05/23/2016

Interview with Guillaume MOREL, CEO of INVIVOO

INVIVOO is a company specializing in the management and optimisation of information systems for financial services.

 

S.P.: Tell us about INVIVOO.

INVIVOO specializes in the management and optimisation of information systems for financial services. We cover the entire software value chain for capital market activities, from managing business requirements to final product release, as well as operational maintenance of business software including their specification, conception and development. Our scope of expertise ranges anywhere from calculating risks for a bank to the development of the corporate bond market in France. 

S.P.: How would you describe the corporate bond electronic trading market in France?

Corporate bond electronic trading is still out of reach for a large number of asset managers. In fact, a vast majority of the 600 asset managers in France still finds it difficult to access trading venues dedicated to corporate bonds such as Euronext Bondmatch, Euronext Bonds or EuroTLX. The connectivity tools for these platforms are still too expensive and the interfaces are not user-friendly.

S.P.: What is the impact on financial markets?

The lack of electronic platforms that bring together corporate bondholders and investors leads to a decrease in liquidity for this market. This situation is even further exacerbated by the ongoing downsizing of investment banks’ trading activities as a result of the third Basel Accord (Basel III) and lower returns. 

S.P.: How could INVIVOO, and more generally the Fintech industry, help overcome this problem?

In partnership with Kepler Cheuvreux, we are currently in the process of launching a corporate bond trading platform that will offer research reports, broker analyses, price and volume data on a single screen. The institutional client base of Kepler Cheuvreux will benefit from this association of complementary skills by gaining greater access to the company’s credit analysis expertise, its membership of electronic trading venues and its Smart Order Routing (SOR) technology. A Smart Order Router is a software layer capable of “smartly” routing orders to different trading venues by taking into account the execution costs and the desired level of liquidity which, in turn, facilitate compliance with the best execution rules under MiFID.  On the other side, INVIVOO looks after the conception of the platform, its development and its production. Designing such a platform involves developing a number of functionalities such as order placement and market access, as well as more complex ones such as building an order book and addressing security issues.   

S.P.: The need for such a platform as a means to improve liquidity on the bond market is very clear, but what about the price?

The solution is based on the usage of XComponent, our business software using fast-development technology capable of processing market data that come irregularly while reducing the time required to do so by distributing calculations. This software enables users to operate in real-time and to rapidly accelerate operations if need be. We have designed a rich client user interface (integrated on the client side, using their own graphic design) with better ergonomics as opposed to a thin client, constrained by the limited capacity of internet browsers or HTML code.  Under normal circumstances, developing such a program should have been a two-year job with five people working full-time. Thanks to XComponent, we developed it in ten months with four full-time equivalents, hence the competitive advantage in terms of costs. 

 

Sia Partners

Copyright © 2016 Sia Partners. Any use of this material without specific permission of Sia Partners is strictly prohibited.

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