LiquidityEdge, a new electronic platform that offers the first fully disclosed relationship-based trading model for the US Treasuries market, has signed up over 50 customers since it commenced live trading, with interest in the platform continuing to grow. The first trades were executed in early August with volumes ramping up throughout the last four months.
LiquidityEdge was launched in response to concerns surrounding the quality of execution and ability to access liquidity on incumbent venues using the anonymous Central Limit Order Book (CLOB) model.
The platform seeks to reintroduce much needed trust, transparency and accountability to the US Treasuries market. It facilitates peer-to-peer trading between a trusted network of counterparties, ensuring information leakage and its subsequent market impact is kept to a minimum.
Users have the ability to trade on prices provided over a continuous stream, matched with opposing resting orders, or through RFQ requests to a chosen group of liquidity providers simultaneously.
The trusted nature of the LiquidityEdge market allows institutions to work large orders through quickly and efficiently without fear of leaking valuable market data, which could increase transaction costs as well as greater levels of risk. Prices are distributed only to those who have an established relationship and trade prints only to the parties to the trade ensuring sufficient levels of confidentiality.
LiquidityEdge is built on proven and award-winning Currenex technology, widely used in the FX market to ensure robust performance and efficient market access for new entrants. Its trading network includes a trusted community of primary and regional dealers as well as professional trading groups.
Bryan Farrell Head of Sales, comments: “The widespread use of the CLOB model in the US Treasuries market has unfortunately proved to be a key vehicle in exacerbating the impact of signal risk and slippage, as it caters to those who are able to invest in the fastest technology and support the biggest footprint.
“We saw an opportunity to provide an alternative for market participants that had become frustrated with the deterioration of relationship based trading, by offering access to a private and trusted network of known liquidity providers and non-bank counterparties alike. These first months of live trading represent a new dawn for the US Treasuries market.”