Dark pool to centralize critical mass of corporate bond liquidity currently unavailable in the market
Liquidnet, the global institutional trading network, today announced that it is integrating with seven Order Management Systems (OMS) to provide direct connectivity into the first dark pool for corporate bonds which is scheduled to launch in Q3. Through these integrations, Liquidnet is centralizing a critical mass of corporate bond liquidity to market participants so that they can take advantage of corporate bond trading opportunities that are currently not available in the marketplace.
“Our clients have asked us for a dark pool that enables them to match based on passive blotter-level dark liquidity. By connecting to their existing order management systems, asset managers will have direct access to a protected venue that allows them to exchange natural liquidity with minimum effort and minimum information leakage,” commented Constantinos Antoniades, Head of Liquidnet Fixed Income. “The functionality, protocols and connectivity of our dark pool will create significant new liquidity in the broader corporate bond universe - not just in the most liquid segment of the market.”
The OMS providers that Liquidnet is currently working with include Charles River Development, Eze Software Group, Fidessa, LineData and Thinkfolio, along with two other major vendors. Liquidnet is also integrating with a number of custom OMS used by their clients. These partnerships will accelerate the growth of electronic corporate bond trading by integrating technology that will help to build a critical mass of liquidity and ultimately, make fixed income trading more efficient.
“There is a growing trend among the buyside community to find new and more efficient ways to access additional liquidity in order to get their trades done,” commented Jeffrey Shoreman, President, Eze Software Group. “This type of integration is essential in bringing the buyside together and enhancing the fixed income trading process.”
"Against the backdrop of greater regulatory scrutiny and tighter capital adequacy requirements, our buy-side customers are finding it increasingly hard to access liquidity in the fixed income markets. Providing them with direct access to Liquidnet's dark pool for corporate bond liquidity is one of a number of key steps we've taken to ensure they can trade these instruments efficiently," commented Paul Nokes, CEO, Fidessa Buy-side.
“Integrating with Liquidnet will drive new efficiencies in fixed income trading and is a key step in making the process more electronic. By expanding our partnership with Liquidnet we are able to drive higher levels of satisfaction across our global client base,” commented Scott Govoni, Director of Strategic Alliances, Linedata.
A recent survey conducted by fixed income magazine, The Desk, demonstrated a strong preference for Liquidnet among buyside firms comprising $12.15T in assets under management. Fifty-eight percent of buy-side respondents reported that they were planning to move their corporate bond trading to Liquidnet, making it the most-preferred among all new platforms in the market.
Liquidnet is the global institutional trading network where more than 780 of the world’s top asset managers and other like-minded investors come to execute their large trades with maximum anonymity and minimum market impact. As the global leader in large block trading, Liquidnet provides access to unique trading opportunities in 43 markets across five continents. Liquidnet approaches every market with the same bold vision to provide a better, more efficient way to trade on a massive scale. It is this focus on size, combined with the strength of its network, disruptive technology, and commitment to transparency, that is revolutionizing the way equities and corporate bonds are traded, and the way public and private companies raise capital. For more information, visit www.liquidnet.com and follow us on Twitter @Liquidnet.
© 2015 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Conduct 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 and a member and block agent of Xetra MidPoint order book. Liquidnet Canada Inc. is a member of IIROC and a member of the 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.