(Corrects to say orders have been placed for 17,000 different
ISINs in paragraph 10)
By Tom Porter
LONDON, Nov 30 (IFR) - Electronic trading venue Liquidnet
will sign sellside firms to its fixed income platform in the
next few weeks, a significant shift from a buyside only model as
banks become more receptive to the all-to-all concept.
"It was always our intention to create an all-to-all
platform to create a critical mass of liquidity," said Mark
Pumfrey, head of EMEA at Liquidnet.
"Most of the sellside interest is coming from regional banks
that perhaps don't have the global client networks, but if the
big dealers want best execution they have to engage with
The move, which could see banks and brokers join the
platform before the end of the year, pivots Liquidnet's fixed
income offering towards that of rivals like MarketAxess and MTS
The fixed income market has been much slower to embrace the
sort of automation technology that now drives the equity and
currency markets, which most participants put down to its more
idiosyncratic and illiquid nature.
But Liquidnet's expansion is another sign that banks, which
pre-crisis kept vast warehouses of bonds for trading, are
warming to e-trading venues having a greater role in helping
investors find liquidity.
"Two years ago if we had told banks we were building a
buyside to buyside fixed income platform, they would have
basically said good luck," said Jonathan Gray, head of fixed
income, EMEA, at Liquidnet.
"Now they are much more receptive."
Liquidnet launched its fixed income platform in September
2015 and operates what it believes is the only buyside to
buyside fixed income dark pool.
The platform has more than 200 active firms, around 70 of
which are in Europe, and orders have been placed for 17,000
different ISINs to date.
(Reporting by Tom Porter)