TradingScreen, a provider of multi-asset class execution management systems to the buy-side, is developing Galaxy, a multi-lateral trading platform for European corporate bonds.

The firm said that Galaxy is aimed at creating a liquid and transparent market for the exchange trading of corporate bonds across Europe. The new platform is open to any regulated institutional participant authorized to trade corporate securities, the company added.

“The buy-side and the sell-side are alike looking for the next step in terms of efficiency for the large corporate bond market,” TradingScreen Chief Executive Philippe Buhannic said in a statement. “The current ventures are not providing the answers to system liquidity issues, the cost of secondary market-making and the increasing transactional costs.”

The firm said the clearing of securities traded on Galaxy will be handled by LCH Clearnet SA, with links to the major International Central Security Depositories and European national Central Security Depositories for settlement and delivery.

Justin Grant for Advanced Trading, August 2010