Liquidnet Fixed Income Platform Executes $3.4b Corporate Bond Trades

Just one year after launch, the platform has delivered critical mass of liquidity for more than 200 institutional investors.

Liquidnet, the global institutional trading network, today issued a statement announcing that since launching in September 2015, its 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.

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Enhanced Trading Performance

Liquidnet provides 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 led to a 41 percent increase in matches, and a 33 percent increase in trades at Liquidnet.

Constantinos Antoniades, Head of Liquidnet Fixed Income said: “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. 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.”

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Growing Active User Base

The combination of dark matching with new features like Targets Invitations has contributed to Liquidnet Fixed Income continuing to attract asset management firms onto its platform, with an active user base up over 250 percent since launch.

Our goal is to free traders from the burden of constantly seeking liquidity.

This growth has been fueled by members’ ability to trade in institutional size, with an average execution of $2.4 million. 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,” added 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.”

Finance Magnates reported on Liquidnet in June after the company introduced its Next Gen Algos to the Asia-Pacific (APAC) region, extending its suite of products to the region in an attempt to extend execution capabilities to institutional traders.

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