Citi Invests in Cicada’s E-Bond Revolution in Mexico

Story Highlights

• Citi invests in Cicada Technologies, a fintech firm revolutionizing Mexican bond trading with an electronic platform.
• Cicada’s platform eliminates the need for traditional broker relationships and offers automation tools for a faster, more transparent market.
• This collaboration positions Citi as a leader in electronic trading and empowers Cicada to lead the Mexican bond market’s digital shift.

Gone are the days of relying on smoke-filled rooms and phone calls for bond trades in Mexico. Citigroup’s recent investment in Cicada Technologies, a Greenwich, CT-based fintech firm, signals a seismic shift towards an electronic future for the Mexican government bond market.

Breaking Up the Old Boys’ Club

Cicada’s innovative platform disrupts the traditional, relationship-driven system. Their all-electronic trading system dismantles the need for pre-existing connections between buyers and sellers. This democratizes access and potentially injects greater liquidity into the market – a welcome change considering the staggering 85% of local bond trades that still rely on manual, phone-based transactions.

Tech-Savvy Traders Drive Change

Cicada’s user-friendly platform boasts features designed for the modern trader. A central limit order book and request-for-quote functionalities streamline the trading process, while automation tools and connectivity to post-trade services offer efficiency and convenience. This tech-driven approach resonates with today’s increasingly digital-savvy investors. Cicada isn’t just building a platform, they’re building a community – 15 major institutions are already actively trading, with 10 more on the horizon.

Citi Joins the Digital Fiesta

Citi’s investment isn’t just financial. They’ll also act as a liquidity provider, further bolstering the platform’s stability and growth. This strategic partnership highlights Citi’s commitment to the evolving financial landscape in Latin America. “Our participation reflects our ambition to be at the forefront of electronic trading,” says Jose Luis Yepez, head of local markets rates trading at Citi.

Cicada and Citi’s collaboration marks a significant step towards a more digital and inclusive Mexican bond market. As Ignacio Tovar, Cicada’s co-founder, emphasizes, “Traders are embracing technology quickly.” With its innovative platform and strong backing, Cicada is poised to lead the charge in this exciting digital transformation. The future of Mexican bond trading is no longer filled with handshakes, but with hashtags – a testament to the power of technology in reshaping traditional financial landscapes.