Liquidnet announced that its fixed income dark pool has exceeded $1 billion of volume traded after its five months in service.
Liquidnets Fixed Income Dark Pool has community consisting of 155 firms and more than 330 active traders. Daily liquidity on the platform also continues to rise to an approximate $7 billion daily average since the beginning of March, according to Liquidnet claims.
When we launched late last year, we set out to solve our Members institutional liquidity challenges. While there is definitely more work to do, we believe the $1B milestone combined with steadily growing trading volumes demonstrates both the appetite and role our solution will play in todays evolving fixed income market structure, said Constantinos Antoniades, Global Head of Fixed Income for Liquidnet.
The average trade size in Liquidnet in 2016 has been $2.3M, reflecting the buysides desire to trade in size when natural liquidity is presented to them safely and efficiently, according to the dark pool firm.
Creating the industrys first institutional fixed income dark pool was a natural evolution for us. We recognized the problem and the obstacles ahead were very similar to ones wed faced when launching our equities business fifteen years ago, and we were able to transition those lessons learned into the success were seeing today, said Seth Merrin, Founder and CEO of Liquidnet. Trading $1B in volume so quickly simply reaffirms the growing need for liquidity in this market and the willingness to adopt Liquidnets solution to centralize it.
Our research confirms the progression towards the active participation of bond investors directly in the search, discovery, and liquidity formation equation. Innovative platforms have moved past the initial onboarding phase of the process and are now experiencing the nascent stages of adoption, said Anthony J. Perrotta, Partner and Global Head of Research & Consulting at TABB Group.