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 and sell-side 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.”
