TP ICAP Enhances Liquidnet’s New Issue Trading Protocol04.06.2022
TP ICAP, a leading electronic market infrastructure and information provider, announced that it has enhanced Liquidnet’s New Issue Trading (NIT) protocol for bonds to enable dealers to join the buy-side in placing orders and trade directly on its new issue order book.
Liquidnet launched the NIT protocol – the first electronic solution to trade new issues in Europe – to its network of over 500 global firms in September 2021. Expanding access to the protocol will now enable more than 100 of TP ICAP’s major dealer clients to also connect, enabling the buy-side and the sell-side to trade together for the first time from a TP ICAP screen. Dealer access to the new issue screen is via Fusion – TP ICAP’s award-winning electronic portal through which its clients can access the Group’s aggregated liquidity and post-trade services.
Nicolas Breteau, CEO of TP ICAP, said: “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. 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.”
Mark Russell, Global Head of Fixed Income for Liquidnet, said: “The electronification of new issue trading is one facet of Liquidnet’s overall Primary Markets initiative. We were the first to introduce a new issue trading protocol in EMEA, and today’s announcement helps to industrialise that innovation by taking it to a new audience. The outcome is improved liquidity, more efficient new issue trading, while still maintaining anonymity.”
The announcement builds on TP ICAP’s acquisition of Liquidnet in March 2021. It follows the phase one launch of Liquidnet Primary Markets in September 2021, providing investors with new deal information in real-time, to setup in their O/EMS for faster processing, and facilitating bond trading in the grey market and immediately post-pricing.
Source: TP ICAP
The acquisition was announced on 4 May 2022.
Market conditions have been unfavourable for primary issuance.
European trading in fixed income instruments is highly fragmented and non-transparent.
Credit markets are on the cusp of a digital transformation that has come to other asset classes.
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