Rival platforms battle to control electronic trading of CLOs
Octaura has the backing of dealers, while Kopentech is leaning into its buy-side roots
Big banks are trying to gain the upper hand in the race to electronify trading of collateralised loan obligations (CLOs), hoping to hold onto their role as key middlemen in a market that has more than doubled in size over the past decade.
Seven dealers have backed a new trading platform, called Octaura, that will combine Bank of America’s electronic trading system for loans with a CLO bidding protocol from Citi and data from Moody’s Analytics. The idea, the banks say, is to bring CLO trading
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