LiquidityEdge – steering a fintech brand through launch, growth and onto a $150 million acquisition
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.”
Electronic US Treasuries (UST) trading venue, LiquidityEdge, has announced it experienced record trading volumes during February 2019.
On February 28, participants traded over USD 31 billion (single count) across both on-the-runs and off-the-runs. It also experienced a record week last month, with USD 101 billion traded between 21-28 February.
The surge in activity was due to the treasury auctions, calendar rolls and the record number of unique participants benefiting from the directed, disclosed model championed by LiquidityEdge. The flexibility in its structure allows clients to choose between one-to-one or many-to-many models, facilitating a combination of anonymous and/or disclosed streaming executable prices creating a bespoke order book for each participant.
This follows on from its record month in January, where it recorded average daily volumes of USD 16 billion, representing a rise of 250% from 2018. A recent Greenwich report referenced LiquidityEdge’s rapid growth and linked it to the rising buy-side interest in aggregating and trading via direct pricing streams
LiquidityEdge is the first US Treasury venue to genuinely challenge the existing market structure that resides between bifurcated D2D and D2C, taking market share from both the traditional interdealer exchanges and RFQ platforms. Since launch, over 100 clients have joined the system, with end users including primary dealers, regional dealers, asset managers, and hedge funds.
The company was founded in 2015 by Wall Street veteran David E. Rutter, who also set up enterprise blockchain firm, R3.
Nichola Hunter, CEO of LiquidityEdge said: “This trading data demonstrates that we are successfully challenging market structure and bringing about change in the largest global fixed income market for the benefit of participants. We expect our market share to continue to grow based on our deep customer pipeline and number of clients currently integrating into the platform.”
Electronic US Treasuries (UST) trading venue LiquidityEdge today announced record trading volumes during October 2018.
Average daily trading volumes reached USD 15 billion, whilst on 3rd October, participants traded over USD 22 billion in US Treasuries across both on-the-runs and off-the-runs.
The surge in activity has been driven by favourable market conditions and the growing popularity of the directed, disclosed model championed by LiquidityEdge. As the line between the traditional sell-side and buy-side continues to blur, participants are seeking more flexible methods of accessing liquidity, tighter prices and greater depth of market.
Since launching in September 2015, LiquidityEdge has rapidly grown its UST market share and volumes, firmly establishing itself as an alternative model for fixed income. A diverse and continually growing community of over 100 institutions including primary dealers, regional dealers, professional trading groups and buy-side clients trade across the entire Treasury curve on a daily basis on LiquidityEdge’s platform.
Nichola Hunter, CEO of LiquidityEdge, comments: “Our aim from the outset has been to provide participants with the choice and flexibility of how they want to access liquidity. The latest trading data demonstrates the confidence and trust the market has in our model and we have no doubt that as market structure continues to evolve, we will continue to see record growth on the platform.”
Dominic Holland, Head of Fixed Income Electronic Markets at BNY Mellon Capital Markets, LLC said: “LiquidityEdge provides the market with a fresh, innovative take on US Treasury trading at a time when clients are adjusting their portfolios amid rising interest rates. BNY Mellon is always looking for new sources of liquidity for our clients so we are delighted that the platform has been embraced so enthusiastically by the marketplace.”
Eric Einfalt, Head of Strategic Development at XR Trading said “LiquidityEdge is among a handful of innovative platforms pioneering the direct streaming model in US cash treasuries. As a premier global liquidity provider, XR Trading is happy to be partnering with LiquidityEdge and others well positioned to help shape tomorrow’s market structure and usher in fair and efficient access to the fixed income market.”
Electronic US Treasuries (UST) trading venue LiquidityEdge today announced that Andy Bria has joined as Chief Operating Officer, based in New York.
Since launching in September 2015, LiquidityEdge has rapidly grown its UST market share and volumes, establishing itself as an alternative model for fixed income. Following the success of the platform, LiquidityEdge has selected Andy to drive further growth and lead LiquidityEdge’s expansion plans.
Andy joins LiquidityEdge from NEX Group, where he held multiple senior roles across client services for both the flagship EBS and BrokerTec brands for over 13 years. Andy was Head of Client Services for six years and in 2011, successfully managed all client-facing aspects of the BrokerTec technology platform refresh.
Andy’s extensive experience in electronic trading and client relations, combined with his expertise in capital markets, ideally places him to help lead LiquidityEdge’s strategy and operations.
Nichola Hunter, CEO of LiquidityEdge, comments: “We’re delighted to welcome Andy to the team and believe his experience in electronic trading will be invaluable to LiquidityEdge in the years ahead. Andy’s strategic guidance will be greatly beneficial as we move into the next phase of growth and we look forward to working with him.”