One year after launch, platform delivers critical mass of liquidity for more than 200 institutional investors throughout the U.S. and Europe
Liquidnet, the global institutional trading network, today marked the first anniversary of its fixed income dark pool. Since launching in September 2015, Liquidnet’s community of fixed income asset managers has grown to 215 active firms with over 490 users who have executed a total of $3.4 billion of corporate bond trades via the Liquidnet platform efficiently, anonymously, and with minimal market impact.
For the past year, Liquidnet has continued to provide its Members with technology and innovation to access liquidity, make smarter execution decisions, and improve overall trading performance. This summer, the firm introduced Fixed Income Targeted Invitations in the US and Europe enabling Members to seek latent liquidity across its network of participants. In just over two months, Targeted Invitations in the US have already led to a 41% increase in matches, and a 33% increase in trades at Liquidnet.
“The liquidity problems in the corporate bond market are not going away, and the buy side has increasingly become aware of the need for them to take control of their ability to directly source liquidity,” said Constantinos Antoniades, Head of Liquidnet Fixed Income. “Technology like Targeted Invitations, which gives traders the capability to access liquidity that was previously hidden, is a game changer for this space as evidenced by the increases our dark pool has seen in engagement, match rate and trades.”
The unique combination of dark matching with new features like Targets Invitations is one of the reasons Liquidnet Fixed Income has continued to attract asset management firms onto its platform, with an active user base up over 250% since launch. This growth has been fueled by Members’ ability to trade in institutional size, with an average execution of $2.4 million.1 Liquidnet’s dark protocols which safeguard information protection and anonymity, together with connectivity to all major order management systems, provide the backbone for the development of an institutional venue for corporate bond trading.
“Our goal is to free traders from the burden of constantly seeking liquidity and to provide them with the tools they need to capture alpha and enhance performance,” said Seth Merrin, Liquidnet Founder and CEO. “The fixed income market—which until now, has been a very manual marketplace—is ripe for innovation, and what we’ve built in these last twelve months is only just the beginning.”
1Jan 4 – Sep 23, 2016
Liquidnet is the global institutional trading network where more than 800 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 44 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. For more information, visit www.liquidnet.com and follow us on Twitter @Liquidnet.
© 2016 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. 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.