Liquidnet Launches Protocol to Trade New Debt Issues

Dark Pool Dark Pool Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek Read this Term operator Liquidnet is enhancing its offerings in the bond market and has launched Liquidnet Primary Markets, which provides an electronified Debt Capital Markets (DCM) workflow for new issue announcements and a protocol to trade new issues.

Announced on Tuesday, the protocol enables Liquidnet members to trade new issues in bond markets across Europe and the United States. Additionally, the DCM workflow, which is available to non-trading desk users, provides a dashboard of new issue announcements.

“Liquidnet Primary Markets is an essential first step in realizing our ambition of becoming the first agency broker to achieve the end-to-end electronification of the life cycle of a bond,” said Mark Russell, Global Head of Fixed Income at Liquidnet.

Complimentary Service

The DCM workflow has been integrated into the existing Liquidnet Fixed Income trading application.

According to the company, its new Fixed Income member service model complements the new offerings. The model includes a dedicated Trade Coverage team that provides expertise and insights to Liquidnet members, thus helping them in trading.

“With our DCM workflow and new issue trading offering, we are addressing the challenges of fragmented new issue dissemination and improving the format of new issue announcements,” Russell added. “For our Members, this means access to primary and secondary markets through a single Liquidnet application and represents new trading opportunities in a fast-moving and rapidly evolving market.”

Liquidnet was acquired by London-based TP ICAP and the deal was closed earlier this year. The latest enhancement in fixed income offering is the first major overhaul of the platform under the new ownership.

“Our parsing technology is a critical part of the DCM workflow,” said Paul Tregidgo, Senior Advisor for Liquidnet. “It creates structured data out of the extensive deal messages received from syndicate banks. This will significantly accelerate the availability of new issue deal data into Order Management Systems and bring greater visibility on new issues to both the buy and Sell-Side Sell-Side Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Read this Term.”