Execution: Strategy Execution
Strategy-executed bonds and rates.
Aware of venue state.
Strategy execution tuned for fixed income market microstructure. Work orders across venues, respect liquidity constraints, adapt to quote state in real time.
Built for bonds
Fixed income execution is not equity execution.
Execution frameworks were designed primarily with equity markets in mind, but their obligations extend across all instrument classes, including bonds and rates. The execution strategies that work in equities – TWAP, VWAP, passive pegging, percentage-of-volume – do not simply transplant to fixed income. The reasons are structural: liquidity is fragmented and largely RFQ-driven rather than continuous; pricing moves differently from a lit equity book.
An execution strategy built for bonds has to respect all of this. Ediphy Markets strategy execution was built natively for fixed-income microstructure from first principles, every strategy respects how each instrument actually trades.
| Equity execution | Fixed-income reality | |
|---|---|---|
| Continuous lit book | – | |
| Meaningful participation rate | – | |
| Anonymous quote stream | – | |
| Continuous lit pricing | – | |
| Stable reference price | – |
Strategy execution, done right for fixed income.
Four capabilities that separate a fixed-income execution strategy from a repurposed equity one.
Venue-sized child orders
Parent orders break into child orders sized for the venue and protocol they route to, small on CLOB, meaningful on RFQ. A uniform child-order size distributed indiscriminately across venues wastes information and degrades execution quality; directed sizing avoids this.
CLOB · RFQ · SIZED
Liquidity-aware pacing
Pacing adapts to Liquidity Scores, faster when an instrument is trading actively, slower when activity is sparse, paused when volatility spikes — pacing that adapts to the market.
LIQUIDITY-AWARE · ADAPTIVE
Venue-state adaptation
When a venue stales or a dealer pulls, the execution strategy re-routes in flight. The same routing logic that drives fairEx on a single ticket runs continuously through the life of a strategy order.
RE-ROUTE · IN-FLIGHT
Post-trade attribution
Every fill attributed against fairMid and the quote state at the moment of execution. Parent-order TCA rolls up from child-order attribution.
PARENT · CHILD · ROLLUP
Decision trace
Every reroute, logged.
Every strategy execution decision is fully transparent. Each child order carries the venue state that produced it, the routing rationale at the moment of execution, and the post-fill attribution against quote-state and fairMid.
Sell-side dealers see the same trace through their own connectivity. Compliance reviewers, internal or supervisory, pull the trace as a single record per parent order.
Why Ediphy
Directed execution beats passive pegging.
Passive execution strategies assume a deep, continuously quoted, anonymous market. Fixed income meets none of those conditions on most orders. A strategy that pegs to the best bid and waits will expose intent to the venue, miss the intervals where the book has genuine depth, and accumulate adverse fills when dealers withdraw their quotes.
Ediphy Markets strategy execution runs on the same directed routing model as fairEx: it reads venue state, determines the appropriate protocol for each order, and adapts in real time. The result is execution that performs on illiquid, oversized, and structurally complex orders, not only on flow where market conditions are already favourable.
Routing checks
- 01 Venue stateIs the venue actively quoting, or is the top quote stale?
- 02 Protocol fitCLOB, RFQ, or A2A, driven by each order.
- 03 Dealer signalWill showing this size leak intent? Size accordingly.
- 04 Volatility bandPause when the benchmark moves outside its threshold.
- 05 Liquidity scoreRe-checked between every child order.
- 06 Quote-state recordLogged at every routing decision for post-trade evidence.