Lancaster offers an algorithmic execution platform that serves as a liquidity provider in the municipal bond market, automatically scanning over one million securities to capture spread opportunities and execute trades electronically. The system enforces portfolio constraints—including duration, credit quality, and tax exposure—and delivers execution alpha with real‑time reporting and API integration for wealth managers, institutional investors, and family offices.
Funding
Funding not disclosed
Founders
Product
Problem
Municipal bond markets are highly fragmented, with over one million infrequently traded securities, resulting in wide bid/ask spreads and opaque price discovery. These hidden transaction costs erode portfolio returns, especially for managers relying on manual execution processes.
Solution
Lancaster delivers a systematic execution platform that functions as a liquidity provider in the municipal bond space. Its algorithmic trading engine continuously scans the market to identify spread capture opportunities and executes trades electronically with disciplined timing. The system enforces portfolio constraints—including duration, credit quality, state and local tax exposure, and AMT considerations—while rotating positions to preserve the intended risk profile. Captured spreads are returned to the client as “execution alpha,” providing incremental yield without adding credit risk. All trades, holdings, and performance metrics are presented through a transparent web dashboard and can be integrated into existing portfolio management workflows via API. The platform is built for customization, allowing each investor to align execution strategies with their specific mandate.
Target Audience
Primary customers are wealth managers, institutional investors, and family offices that manage municipal bond portfolios and seek to reduce execution costs while preserving portfolio constraints.
Features
- Real‑time opportunity engine that ingests market data across >1 M municipal issues and flags actionable spread capture trades.
- Fully automated electronic execution workflow with millisecond latency and built‑in order‑type controls to minimize slippage.
- Liquidity‑provision module that systematically supplies the opposite side of trades, earning the bid/ask spread on behalf of clients.
- Portfolio construction engine that continuously monitors and enforces duration, credit, diversification, and tax‑exposure constraints during rotation.
- Transparent reporting suite offering trade‑by‑trade audit trails, performance attribution, and API access for integration with third‑party portfolio systems.
- Role‑based access controls and end‑to‑end encryption to meet SEC, FINRA, and data‑privacy compliance requirements.
- Scalable cloud infrastructure that supports multiple concurrent portfolios while maintaining low‑latency execution.