Sellside to join Liquidnet as they warm to fixed income fintech (Reuters)
November 30, 2016 \ 4 Comments
Full Article: Reuters
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 seems that deep pockets will come in handy for this launch and I’m curious as to what the fee structures are. The industry in general bemoans the high fees associated with MA and if Liquidnet can survive months of on-boarding liquidity and can build up a business that lowers the cost of execution, they’ll have a good chance of surviving. I don’t think there’s any doubt that there is room for new trading paradigms, but both dealers and buy-side firms are challenged with limited resources and will need to choose which platforms they board and how much time and… Read more »
I absolutely love the headline for this article. Reuters, have you no shame? From what I can tell, this is simply a change in policy by Liquidnet to allow the sell-side access to their fixed income platform. What this article fails to mention is whether or not ANY DEALERS have actually joined. I am sure some will, but come on Reuters…..do better. Now what is so interesting about this development is it was a predictable as the winter solstice. Want to know why? Because it is EXACTLY what Liquidnet did in the equities market. After all the rhetoric about creating… Read more »
If there is one thing everyone has learned by now, it is that the major dealers have zero interest in supporting an all to all platform. In the article itself they even state, “Most of the sellside interest is coming from regional banks that perhaps don’t have the global client networks” . No kidding that most (read ALL) of the interest is coming from ‘regional banks’ and let’s be clear that when they say regional, they mean the non-major european banks, probably names like Erste, Den Danske, Commerzbank, Unicredit, etc…. This is just pompous self promotion. Just tell it like… Read more »
Agree with everyone else here. Doubtful there will be much liquidity without the big dealers as is always the case. I am also curious as to the fee structure as well.
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