Octaura Holdings has entered the collateralized loan obligation (CLO) secondary market with a new electronic trading platform, a move poised to reshape how these complex financial instruments are bought and sold. The platform, launched after months of beta testing with select firms, offers three distinct trading protocols – Bilateral, Request for Quote (RFQ), and Lists – designed to streamline transactions and increase openness.
This launch builds on Octaura’s existing syndicated loan trading platform, introduced in 2022, and addresses longstanding inefficiencies in the CLO market. Institutional investors have historically faced operational hurdles participating in CLO trading; Octaura’s platform aims to lower those barriers by providing a “unified framework” for execution. The growth arrives as investor appetite for CLOs surges, though concerns regarding underlying risks remain.
The platform’s three protocols-Bilateral, Request for Quote (RFQ), and lists-are now fully operational following a beta period facilitating live transactions. Octaura intends the platform to reduce friction and improve execution for all participants.
“Bringing our CLO platform and BWIC protocol to life is not just a milestone for Octaura, but a notable leap forward for the entire industry,” said Brian Bejile, chief executive of Octaura. “For to long, structural inefficiencies have impeded institutional investors from fully participating in the CLO market. Today,we’re changing that narrative.”