TP ICAP Connects Dealers to Liquidnet’s New Trading Protocol

TP ICAP announced on Wednesday the enhancement of Liquidnet’s New Issue Trading (NIT) protocol for bonds, thus enabling dealers to join the buy-side in placing orders and trade directly on its new issue order book.

Liquidnet, which provides the largest dark pool services, launched the NIT protocol last September. According to the company, It was the first electronic solution to trade new issues in Europe with a network of over 500 global firms.

The latest expansion of the protocol is going to enable more than 100 of TP ICAP’s major dealer clients to also connect. It will be the first time TP ICAP will allow both buy-side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term 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 participants to trade on the same platform.

“Making it possible for TP ICAP’s dealer clients to connect to the innovative NIT protocol means a deeper liquidity pool and more efficient trading experience for all, buy-side and sell-side,” said the CEO of TP ICAP, Nicolas Breteau.

“It’s another compelling example of what the combined strengths of TP ICAP and Liquidnet bring to market, and that we are on track in executing our growth plans.”

A Strategic Acquisition

TP ICAP, which is an electronic market infrastructure and information provider, acquired Liquidnet last year. Liquidnet brought in £159 million in revenue to its parent since the acquisition, but TP ICAP still recorded an 81 percent drop in profits in 2021.

Meanwhile, Liquidnet is enhancing the coverage of its services in continental Europe by deploying equities and fixed income specialists in Paris, Madrid, Frankfurt and Copenhagen, Finance Magnates reported earlier.

“The electronification of new issue trading is one facet of Liquidnet’s overall Primary Markets initiative,” said Mark Russell, the Global Head of Fixed Income of Liquidnet.

“We were the first to introduce a new issue trading protocol in EMEA, and today’s announcement helps to industrialize that innovation by taking it to a new audience. The outcome is improved liquidity, more efficient new issue trading, while still maintaining anonymity.”