More pricing transparency has come to the fixed-income market – and in particular the dark pool arena.
Interactive Data is now providing block trading alternative trading venue Liquidnet with continuous evaluated pricing to help its fixed income trading platform participants meet its price discovery and best execution objectives.
This comes as the dark pool prepares to launch its own fixed-income (corporate bond) trading venue.
The to-be-launched dark pool already has the support of 780 institutional investors who plan to trade in it, according to Liquidnet.
Interactive Data streaming evaluated prices are delivered via a FIX protocol feed, for high-yield and investment-grade U.S. and European corporate bonds to Liquidnet. Liquidnet said the data will better serve its clients by providing them with reference pricing in order to perform transaction cost and best execution analyses for their trades, which is part of a larger firm-wide initiative to provide better transparency to the currently opaque bond market.
“Our goal is to give our clients the ability to access pre-trade price data with the press of a button. This is essential in facilitating liquidity exchange in a negotiated liquidity pool,” said Constantinos Antoniades, head of fixed income at Liquidnet. “Participants in our corporate bond dark pool will be able to use Interactive Data’s continuous evaluated pricing as a reference point for their dark pool trade negotiations. The data will also be incorporated into the platform’s best price execution calculations giving participants the ability to create an audit trail so that they can better achieve and document best execution and transaction cost analysis.”
Interactive Data’s continuous evaluated pricing service launched in late 2014.
The continued shift of fixed-income securities to electronic trading platforms requires a supply of independent, high-quality data that allows users to assess quote quality and enhance price discovery, in the absence of traditional protocols. Continuous evaluated pricing facilitates this activity, according to Interactive Data.
Pricing, evaluations and reference data are provided in the U.S. through Interactive Data Pricing and Reference Data LLC and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd.
