Liquidnet, the global institutional trading network, today announced that together with Capital Group that they are the first broker and asset manager combination to successfully complete the post-trade lifecycle by utilizing the FIX Protocol.
FIX Protocol has been considered a reliable, open and independent industry standard for years, with many asset managers and brokers adopting the technology for front office messaging pertaining to executions and orders. More recently, some asset managers have also chosen to use FIX to communicate their allocations to their executing brokers. The extension of FIX into confirmation and affirmation by Liquidnet and Capital Group marks the first use of FIX for the complete post-trade life-cycle.
As active members of the FIX Protocol Limited (FPL) Americas Buy-side Working Group, an industry group of broker dealers and investment managers focused on further leveraging FIX protocol for post-trade processing, both companies partnered on the initiative with shared desire for an dependable alternative for allocation and confirmation management.
“At Liquidnet we are constantly searching for new ways to partner with our Members and provide them with value-added solutions to their everyday needs,” said Paul McSherry, Head of US Trading Operations at Liquidnet. “By employing FIX Protocol, we now have a reliable and highly customizable tool that enables us to further cater to the buy-side community’s evolving needs of minimizing cost, diversifying risk and processing trades seamlessly.”
“When we first took on this project, we were looking for an alternative to our current post-trade process. Leveraging our existing front office FIX infrastructure for confirmations seemed an efficient and cost effective solution” said Darrin Vallone, Vice President of Operations at Capital Group. “We put together a great team to work on this project and what they were able to accomplish in such a short time is impressive.”
“FIX Protocol provides buy and sell-side firms with a standardized approach for more effective management of risk issues, enhanced transparency, reduced costs and greater efficiencies for equities post-trade processing,” said Courtney McGuinn, FIX Protocol Operations Director. “We’re thrilled to see early adopters expanding their use of this technology to increase efficiency in the post trade environment.”
Liquidnet is the global institutional trading network that connects equity investors with the liquidity they need. We go beyond what the retail market can provide by defending and securing the integrity and the anonymity of the block trade. We do this while continuously looking for ways to bring in new sources of safe, actionable liquidity from asset management firms, exchanges, brokers and corporations. Since we launched in 2001, our ability to anticipate and meet institutional demand has allowed us to extend trading to 42 equity markets across five continents for asset management firms who collectively manage US$12.4 trillion. For more information on the Liquidnet community, its liquidity, block executions, and additional investment capabilities, visit www.liquidnet.com.
About The Capital Group
Capital Group is a global investment management firm headquartered in Los Angeles with more than $ 1 trillion in assets under management. It has more than 80 years of experience investing on behalf of clients in the United States and around the world. Capital Group manages mutual funds, variable annuity assets, collective investment trusts, and separately managed accounts for individuals, pension funds, institutions and endowments.
Melissa Kanter, Liquidnet
Global Marketing & Communications
+1 646 660 8469
*as of 1H 2012 ©2012 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Services Authority in the UK, is licensed by the Financial Services Board in South Africa, and is a member of the London Stock Exchange and a remote member of the Warsaw Stock Exchange and SIX Swiss Exchange. Liquidnet Canada Inc. is a member of IIROC and a member of Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and a provider of automated trading services pursuant to the Securities and Futures Ordinance and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the Australian Securities and Investment Commission as an Australian Financial Services Licensee, AFSL number 312525, and is registered with the New Zealand Financial Markets Authority as a Financial Service Provider, FSP number FSP3781.