Vega-Chi to launch electronic trading platform for high-yield bonds

By Angela McDaniels

Tacoma, Wash., May 30 - Vega-Chi US Ltd. said it will launch a U.S. high-yield bond electronic trading platform in the third quarter of this year.

The Vega-Chi alternative trading system will be the first electronic trading platform of its kind dedicated to high-yield bonds in the United States, according to a company news release.

Participation will be limited to institutional investors. Vega-Chi will create an alternative pool of liquidity where buyside institutions can trade directly with each other in an anonymous manner, which bypasses the broker-dealer establishment.

There are no upfront or ongoing participation costs, and participants pay a fee only when they execute a trade.

Vega-Chi said it has begun the on-boarding process with more than 50 high-yield bond institutional investors and expects to launch in the second half of the third quarter with a minimum of 50 to 70 participants.

Vega-Chi Ltd., the parent company of Vega-Chi US, operates two similar electronic trading platforms in Europe, one for European high-yield and subordinated financial bonds and one for European and Asian convertible bonds.

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