Liquidnet Prepares To Launch Bond Dark Pool

Terry Flanagan

Liquidnet is integrating with seven Order Management Systems to provide direct connectivity into its dark pool for corporate bonds which is scheduled to launch in the third quarter. Through these integrations, Liquidnet is centralizing corporate bond liquidity to market participants so that they can take advantage of corporate bond trading opportunities that are currently not available in the marketplace.

“Our clients have asked us for a dark pool that enables them to match based on passive blotter-level dark liquidity,” said Constantinos Antoniades, head of Liquidnet Fixed Income, in a release. “By connecting to their existing order management systems, asset managers will have direct access to a protected venue that allows them to exchange natural liquidity with minimum effort and minimum information leakage.”

The OMS providers that Liquidnet is currently working with include Charles River Development, Eze Software Group, Fidessa, LineData and Thinkfolio, along with two other major vendors. Liquidnet is also integrating with a number of custom OMS used by their clients. These partnerships will accelerate the growth of electronic corporate bond trading by integrating technology that will help to build a critical mass of liquidity and ultimately, make fixed income trading more efficient.

“There is a growing trend among the buy-side community to find new and more efficient ways to access additional liquidity in order to get their trades done,” said Jeffrey Shoreman, oresident, Eze Software Group. “This type of integration is essential in bringing the buy side together and enhancing the fixed income trading process.”

“Against the backdrop of greater regulatory scrutiny and tighter capital adequacy requirements, our buy-side customers are finding it increasingly hard to access liquidity in the fixed income markets. Providing them with direct access to Liquidnet’s dark pool for corporate bond liquidity is one of a number of key steps we’ve taken to ensure they can trade these instruments efficiently,” said Paul Nokes, CEO, Fidessa Buy-side.

“Integrating with Liquidnet will drive new efficiencies in fixed income trading and is a key step in making the process more electronic. By expanding our partnership with Liquidnet we are able to drive higher levels of satisfaction across our global client base,” said Scott Govoni, director of strategic alliances at Linedata.

Featured image via Shane Farnsworth/Lightstock

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