Case Study: MarketAxess achieves real-time bond pricing accuracy with H2O.ai

MarketAxess scores 24,000 bonds every 15 seconds with H2O.ai

MarketAxess, a leading electronic trading platform for fixed-income securities, faced the challenge of providing transparent and accurate real-time pricing across a vast universe of 24,000 corporate bonds, a task made difficult by thin market liquidity. To empower its clients as confident price makers, they partnered with vendor H2O.ai to leverage its H2O Driverless AI and H2O-3 products.

The solution was the development of Composite+, a proprietary algorithmic pricing engine powered by H2O.ai's technology. This engine continuously scores bonds and refreshes prices every 15 seconds. The implementation by H2O.ai reduced average model scoring errors by $0.66 per bond, significantly sharpening pricing accuracy for traders and earning the engine industry awards for its innovation.

MarketAxess