Liquidnet says its fixed income dark pool has exceeded US$1 billion of volume traded, after just five months. The platform has also experienced notable growth in users, with the fixed income member community growing to 155 firms and over 330 active traders. Daily liquidity on the platform also continues to rise to an approximate $7 billion daily average since the beginning of March.
Said Constantinos Antoniades, global head of fixed income: “When we launched late last year, we set out to solve our Members’ institutional liquidity challenges. While there is definitely more work to do, we believe the $1B milestone combined with steadily growing trading volumes demonstrates both the appetite and role our solution will play in today’s evolving fixed income market structure,”.
Similar to Liquidnet’s equities dark pool, the fixed income platform is designed to facilitate institutional-sized trades—a particular pain point for buy-side traders who need to find liquidity with minimal market impact. The average trade size in Liquidnet in 2016 has been $2.3 million, reflecting the buy side’s desire to trade in size when natural liquidity is presented to them safely and efficiently.
Said Seth Merrin, founder and CEO of Liquidnet “Creating the industry’s first institutional fixed income dark pool was a natural evolution for us. We recognised the problem and the obstacles ahead were very similar to ones we’d faced when launching our equities business 15 years ago, and we were able to transition those lessons learned into the success we’re seeing today. Trading $1 billion in volume so quickly simply reaffirms the growing need for liquidity in this market and the willingness to adopt Liquidnet’s solution to centralise it.”