Electronic US Treasuries (UST) trading venue LiquidityEdge has announced record trading volumes during October 2018.
Average daily trading volumes reached USD15 billion, whilst on 3 October, participants traded over USD22 billion in US Treasuries across both on-the-runs and off-the-runs.
The surge in activity has been driven by favourable market conditions and the growing popularity of the directed, disclosed model championed by LiquidityEdge. As the line between the traditional sell-side and buy-side continues to blur, participants are seeking more flexible methods of accessing liquidity, tighter prices and greater depth of market.
Since launching in September 2015, LiquidityEdge has rapidly grown its UST market share and volumes, firmly establishing itself as an alternative model for fixed income. A diverse and continually growing community of over 100 institutions including primary dealers, regional dealers, professional trading groups and buy-side clients trade across the entire Treasury curve on a daily basis on LiquidityEdge’s platform.
Nichola Hunter (pictured), CEO of LiquidityEdge, says: “Our aim from the outset has been to provide participants with the choice and flexibility of how they want to access liquidity. The latest trading data demonstrates the confidence and trust the market has in our model and we have no doubt that as market structure continues to evolve, we will continue to see record growth on the platform.”
Dominic Holland, Head of Fixed Income Electronic Markets at BNY Mellon Capital Markets, LLC, says: “LiquidityEdge provides the market with a fresh, innovative take on US Treasury trading at a time when clients are adjusting their portfolios amid rising interest rates. BNY Mellon is always looking for new sources of liquidity for our clients so we are delighted that the platform has been embraced so enthusiastically by the marketplace.”
Eric Einfalt, Head of Strategic Development at XR Trading, says: “LiquidityEdge is among a handful of innovative platforms pioneering the direct streaming model in US cash treasuries. As a premier global liquidity provider, XR Trading is happy to be partnering with LiquidityEdge and others well positioned to help shape tomorrow’s market structure and usher in fair and efficient access to the fixed income market.”