MarketAxess Launches Leveraged Loan Trading Platform

MarketAxess Holdings Inc. (Nasdaq: MKTX), an operator of electronic trading platform for fixed-income securities, has launched a new electronic trading platform for leveraged loans, helping tap into a growing market, according to a MarketAxess statement.

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The new platform caters exclusively to leveraged loans, amidst a healthy uptick in trading volumes during 2016. Over a YoY basis, this market has been fueled by a steady demand, with more and more users seeking a viable medium for trading. MarketAxess’ platform is one of the first client-to-multi-dealer electronic trading platforms available to market participants, helping institutional users utilize deeper Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and price discovery.

The group’s new leveraged loan platform features a number of features in MarketAxess’ inaugural foray into the asset class. This includes the deployment of a request-for-quote model, highlighted single-item loan trading. Moreover, the platform relies on unique search functions that help streamline loan searches by LX number, or issuer name.

Finally, the platform also features Straight-through-processing (STP) integration and connectivity, which grants full trade automation and a comprehensive trade activity log. Such attributes are instrumental for market participants opting to trade leveraged loans, given the need for increased transparency and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term needs.

According to Sandy White, High Yield and Leveraged Loan Product Manager, MarketAxess, in a recent statement on the launch, “There is an increasing demand for access to leveraged loans trading in what has traditionally been an opaque and underserved area of the market. We saw an opportunity to bridge that gap with our technology and bring greater efficiency and transparency to leveraged loan trading.”

“The launch is a natural extension of our high yield trading capabilities and underscores our commitment to providing a unique marketplace for institutional investors and dealers to facilitate trades with greater confidence, transparency and speed,” reiterated White.

The development follows after a recent expansion of MarketAxess’ product offering, which saw an extension of its capabilities for municipal bonds, including its Muni Offerings.