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Cicada has created an innovative and comprehensive electronic alternative trading system for global institutional market participants to trade Mexican government bonds.
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Citi has a strategic minority investment in Cicada and will act as the trading platform’s liquidity provider.
New York, May 8, 2024–(BUSINESS WIRE)–Citi has made a strategic minority investment in Cicada Technologies Inc.
The investment was made by Citi’s Markets Strategic Investments division, which is responsible for sourcing and executing strategic investments related to Citi’s Markets franchise. Citi also acts as a liquidity provider for the trading platform.
Cicada is a fintech company based in Greenwich, Conn., and also has offices in Mexico. Citi joins existing investors Kaschek Ventures, Dilla Capital and BCP Securities.
Cicada is an innovative all-to-all electronic alternative trading system ( ATS) was built. ATS is registered with the SEC and the broker-dealer activities of Cicada Securities LLC (a subsidiary of Cicada technology Inc.) are regulated by FINRA.
Cicada allows electronic trading of 28 types of Mexican government bonds, including nominal fixed-rate bonds (Mbonos) and inflation-linked securities (UDIBonos) that can be settled on Indeval, Euroclear, or Clearstream. The company is also considering enabling trading in Setes (Mexican Treasury bills), TIIEs (Mexican interest rate swaps), Mexican corporate bonds, and other emerging market government securities.
The size of Mexico’s bond market is approximately $500 billion, with an average daily trading volume of approximately $500 billion. 5 billion to $7 billion, according to Banxico data. The market has been slow to become digital compared to other asset classes. Banxico estimates that at least 85% of municipal bonds are traded over voice and OTC via traditional non-electronic brokers. To solve this, Cicada aims to enable the adoption of technology among market participants, with the goal of moving these volumes to electronic trading.
“As the leading liquidity provider for the Mexican government bond market, joining Cicada’s platform supports our ambition to be at the forefront of electronic trading,” said José Luis Yepez, Head of Local Market Rates Trading at Citi. It reflects that.”
Cicada aims to accelerate the adoption of electronic trading through central limit order book (CLOB) and request for quotation (RFQ) protocols. The platform also provides automation tools for buy-side and liquidity providers, efficient trade execution, connectivity to post-trade services, and data analysis of current and historical bond prices.
Ignacio Tovar, co-founder of Cicada, said: “Traders are rapidly embracing the technology, with 15 well-known institutions currently active on the platform and 10 in the process of joining. Since its launch, trading volumes on the platform have increased.” 15 times. ”
“We are excited to invest in Cicada,” said Aldo Alvarez, Latin America Lead for Markets Strategic Investments at Citi. It has the potential to increase efficiency.” unit.
Through investments in emerging and early-stage companies, MSI accelerates the development and adoption of new technologies, market structures, and solutions to drive innovation.
About the City
Citi is a premier banking partner for institutions with cross-border needs, a global leader in wealth management, and a highly regarded private bank in its home market of the United States. Citi operates in approximately 160 countries and jurisdictions, providing a broad range of financial products and services to businesses, governments, investors, institutions and individuals.
For additional information, please visit www.citigroup.com | X: @city | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
About cicadas
Cicada Technologies, Inc. is a financial technology company that develops and operates electronic trading solutions for institutional customers worldwide. In 2022, Cicada launches an innovative all-to-all electronic alternative that allows global institutional buy-side and sell-side market participants to trade Mexican government bonds with each other without the need for existing trading systems. We have launched a trading system (ATS). trade relations. ATS is registered with the SEC and the broker-dealer activities of Cicada Securities LLC (a subsidiary of Cicada technology Inc.) are regulated by his FINRA.
For additional information, please visit www.cicada.io | LinkedIn: www.linkedin.com/company/hellocida/mycompany/
View source version on businesswire.com. https://www.businesswire.com/news/home/20240508325267/en/
contact address
media
city
Rekha Jogia Soni
Rekha.JogiaSoni@citi.com
cicada
Ignacio Tovar
Ignacio.tovar@cicada.io
Javier Hernandez
Javier.Hernandez@cicada.io
