A new trading solution has been launched, designed to assist European buy-side traders in efficiently accessing bilateral liquidity. This solution combines access to bilateral liquidity through a front-end application and a liquidity-seeking algorithmic suite, facilitating a streamlined interaction with prominent liquidity providers.
The initiative has been bolstered by collaborations with several market makers, including a notable participant that is expected to enhance the offering further. Members utilizing this infrastructure, which operates outside a specific trading venue, will maintain execution quality, anonymity, and operational efficiency.
Bilateral liquidity is increasingly critical within European equity trading, now representing nearly 50% of overall market volumes, as highlighted in a recent report on liquidity landscapes. However, the access to such liquidity has often been fragmented and unclear. This new approach seeks to establish a more straightforward and transparent pathway for navigating these challenges.
One key executive commented on the transformation of liquidity access in Europe, emphasizing the importance of adapting to these structural changes in the market. By incorporating bilateral liquidity into both the front-end application and the algorithmic suite, traders are provided with tools that promote confident and controlled access to meaningful liquidity. This also serves the market-making community by broadening their scope and enhancing their risk management capabilities.
The new offering comprises several features aimed at improving the trading experience:
– A service that allows customization for buy-side traders and liquidity providers.
– Execution options that include mid-price and touch executions through the liquidity-seeking algorithms and front-end technology.
– Anonymous access to aggregated liquidity streams, offering tiered and member-specific configurations.
– Consulting services to assist members in identifying the most effective liquidity sources and optimal trading timings.
– Monitoring tools and analytics to track fill rates, information leakage, and performance of venue providers.
This development aligns with a broader strategy to enhance execution capabilities, aiding industry participants in overcoming complex liquidity challenges. It also complements previous investments made in a proprietary algorithmic platform, signaling a commitment to continuous innovation in the market.