Liquidity Edge, the electronic US Treasuries trading venue, has signed a deal to license Mosaic Smart Data MSX platform to provide venue analytics across its portfolio of marketplaces.
Mosaic Smart Data will give LiquidityEdge a package of analytics that will help the latter to monitor and compare liquidity in the markets to ensure smooth market operation, better trading efficiency and growth facilitation.
These additional analytics will help in comprehending the transaction flow and behaviour of market participants and calculation of market impact, as well as transaction costs. The MSX platform has anomaly detection tools that are built on machine learning tools, that will point to any abnormal market activity that may trigger a rising issue. So, once such an action is detected, preventive measures will be taken to maintain normal market operations.
Market liquidity in fixed income decreases and this creates an obstacle for trading venues to acknowledge possible challenges in their platforms in advance and fix the issues, so solution to fix this problem are constantly sought after.
The deal between LiquidityEdge and Mosaic Smart Data is the result of long collaboration between the two to develop analytic tools for trading operations. The service will be first used by LiquidityEdge on the back-end to get insights on the performance of the trading venue, and afterwards – for insights for market participants.
LiquidityEdge will serve as a SaaS feature with the MSX platform fully managed by Mosaic Smart Data.
This is what the CEO of LiquidityEdge, Mr. Nichola Hunter said:
“We built LiquidityEdge to challenge existing market structures and ‘business as usual’ in the Treasuries market. So, we’re always on the lookout for innovation which will enable us to deliver a better experience to our users. The MSX platform harnesses the power of our order book to deliver finely grained analysis and actionable insights delivering performance improvements for LiquidityEdge and our users.”