The new solution introduced today enables sellside firms as well as IPCs community of more than 4,000 buyside firms comprised of institutional investors, insurance companies, corporate treasuries, asset managers and hedge funds to trade ETFs electronically or via voice.
ETFs provide transparency, standardization and tight bid-ask spreads in addition to offering market makers an efficient way to manage and transfer risk, said Anthony Perrotta, partner and global head of research and consulting at TABB Group. Electronic and voice connectivity to an established ecosystem of counterparties and liquidity venues is crucial for fixed income ETFs since they trade simultaneously both over-the-counter and on exchanges.
Perrotta continued, As ETFs continue to proliferate and fixed income market participants increasingly utilize the products to both manage beta and generate alpha, we foresee an increased demand for specialized communications and managed network services which will ensure optimum flow of information and data.
The IPC Financial Markets Network service portfolio includes the Connexus Financial Extranet, Direct Connect and MPLS WAN data services, as well as Trader and Enhanced Voice connectivity services. IPCs Financial Markets Network interconnects global financial centers and allows access to more than 6,000 market participant locations across 700 cities in more than 60 countries.
The combination of ETFs and our Financial Markets Cloud offers a powerful and transformational paradigm for the rapidly evolving global fixed income markets where sourcing liquidity, mitigating risk, connecting market participants and enabling all-to-all trading have become imperative, said Joseph Pickel, global head of sales and marketing, financial markets network for IPC.
