Empirasign Axes (Anonymous Bond Bulletin Board and Chat System) FAQ
What's this all about?
A hedge fund client of ours expressed dissatisfaction about the current way they manage their axes. First, was the labor problem. It had become tiresome and labor intensive to send out emails to various dealers with axe information. The second issue is information management. If a buy side shop shows their axes to 1-3 dealers, they feel their interests don't get enough exposure to get a trade done. On the opposite end, if the axe is shown to 15-20 dealers, then anonymity is most likely lost. Empirasign's Axe System addresses and solves both these problems. For the former, our Axe System includes an easy to use Excel uploader, ridding you of the hassle of composing messy and time-consuming emails. For the latter, with Empirasign Axes your buy and sell interests get wide exposure while preserving anonymity. The only time your name is released is when you and the axe poster agree to contact a dealer to cross a trade.
Is Empirasign a Broker/Dealer Now?
No, Empirasign does not have the ability to effect transactions, nor will it extract any compensation directly related to the participation in the Empirasign Axes system. It is entirely up to the chat participants to work out the details of effecting a securities transaction. Any crossing fees will be 100% caputured by the dealer who closes the transaction. That being said, the Empirasign Axe System does simplify the process. Whenever a chat is launched, both sides of the chat are alerted as to which dealer trading relationships they hold in common (as stored in their Empirasign Dealer Contacts page, also found under Axes). As such, if they agree upon a trade to do, they can quickly direct their common interest to an entity that can close the trade.
How Do I Benefit From This?
Active participants gain through being able to access previously inaccessible pockets of liquidity and gathering market intelligence in an anonymous fashion. Passive participants gain through the extra Market Data accessible solely through Empirasign.
Who keeps the data?
All posted Axes become the property of Empirasign. Empirasign shall never reveal the identity of posters. The market data information in an axe will be posted on our site along with standard search results from BWICs and offers.
What if I don't want to post and/or chat?
That's fine as well. Nobody is compelled to post any data nor engage in any chats on the Empirasign Axes system. Furthermore, if you do chose to participate, no extra access fees will be charged. Beta testers of the system may be eligible for reduced fee access to Empirasign during the Beta testing period.
How do I do loop in compliance?
We have set up a self serve compliance page that can send archives of all your posts and chats directly from Empirasign to your compliance officer. If you need this done automatically and on a scheduled basis, please contact your Empirasign representative. The full disclaimer of the Empirasign Axes product can be read on our documentation page: www.empirasign.com/axes-docs/
What do I do if I have further questions, or would like to set up a demo?
Please contact any of the following: