LiquidityEdge, a new electronic platform that offers multi-participant, fully disclosed relationship-based trading on US Treasuries, revealed that it has signed up over sixty customers since it commenced live trading in early August with volumes ramping up throughout the last four months.
The platform was launched by former BrokerTec CEO and ICAP etrading head, David Rutter, and is built on the same underlying technology as Currenex but applies to US Treasuries instead of FX. LiquidityEdge is a direct assault on the market dominance of the ICAP–owned BrokerTec, and is attracting customers from both buy and sell-side. Rutter also recently launched the R3 block chain consortium of thirty banks.
The developer explains that by facilitating peer-to-peer trading between a network of counterparties, trading on LiquidityEdge reduces information leakage and subsequent market impact is kept to a minimum. Users have the ability to trade on prices provided over a continuous stream, matched with opposing resting orders, or through RFQ requests to a chosen group of liquidity providers simultaneously. Prices are distributed only to those who have an established relationship allowing both parties to maintain their required level of confidentiality.
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Nichola Hunter, COO of LiquidityEdge, said: “We have built the platform on proven and award-winning Currenex technology, widely used in the FX market to ensure robust performance and efficient market access for new entrants. Our trading network includes a trusted community of primary and regional dealers as well as professional trading groups, and we are delighted with the pace at which we are building liquidity.”
Bryan Farrell, Head of Sales at LiquidityEdge, comments: “We saw an opportunity to provide an alternative for market participants that had become frustrated with the deterioration in the quality of execution on anonymous trading venues, by offering access to a private and trusted network of known liquidity providers and non-bank counterparties alike. These first months of live trading represent a new dawn for the US Treasuries market.”
Ryan Sheftel, Head of Fixed Income at Global Trading Systems, an automated market maker of equities, ETFs, commodities, futures, foreign exchange and interest rate products, said: “We are pleased to be a founding liquidity provider on LiquidityEdge and look forward to partnering with them to offer a relationship-based fully disclosed trading model that will prove to be as beneficial to the US Treasuries market as it has been in other markets.”