Why it Works
embonds’ founders, Mehmet Artun and Kerim Acanal, with nearly 40 years of combined experience in emerging markets’ fixed income instruments, realized there had to be a better way of trading the bonds. Historically, most transactions went through a handful of large market makers. But the lack of transparency in doing business this way meant that neither side of the trade could be sure they were getting the best possible price. Only on exchanges where all interested parties could clearly display bids, offers and volumes could traders be sure they weren’t leaving money on the table.
At the same time, harsher regulatory regimes following the financial crisis meant that traditional market makers had to devote even greater amounts of scarce capital to trading emerging market bonds. Unwilling to take the securities onto their books, market liquidity started to evaporate. A tough economic environment has made life even more challenging for emerging market traders.
Never has it been more important for traders to be sure of getting the best possible terms on their trades. Which is exactly what embonds aims to deliver.