Liquidnet delivers 87 percent transaction cost savings
July 11, 2018

Liquidnet, the global institutional trading network, today announced the results of an independent transaction cost analysis (TCA) conducted by IHS Markit. The analysis found 87 percent transaction cost savings by trading on Liquidnet Fixed Income, relative to the best dealer price at the time of execution, based on prices available from the IHS Markit feed.

In order to quantify the transaction cost benefits of trading against natural buy-side liquidity, Liquidnet commissioned IHS Markit to examine all buy-side to buy-side trades executed on Liquidnet Fixed Income in the US and Europe during the 15-month period between Q1 2017 and Q1 2018. 

"The fixed income market has been slow to embrace TCA as historically it's been difficult to measure and results easily contested," said Kevin McPartland, Head of market structure and technology research at Greenwich Associates. "However, as data become more readily available and analytics more sophisticated, ensuring best execution in the bond market is quickly becoming more science than art." 

"Even though TCA is not the only metric that our Members focus on, especially given some of the challenges with corporate bond data, it is nevertheless an excellent tool to assess execution quality across different venues and counterparties," said Constantinos Antoniades, Head of fixed income at Liquidnet. "Trading with other buy-side Members in Liquidnet is becoming more compelling by the day, especially with our rapidly growing buy-side liquidity pool." 

Liquidnet Fixed Income reported record liquidity in June 2018 with more than US$20 billion in average daily buy-side liquidity, including more than 900 buy-side blocks daily. 

 





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across fundservices.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

Liquidnet, the global institutional trading network, today announced the results of an independent transaction cost analysis (TCA) conducted by IHS Markit. The analysis found 87 percent transaction cost savings by trading on Liquidnet Fixed Income, relative to the best dealer price at the time of execution, based on prices available from the IHS Markit feed.

In order to quantify the transaction cost benefits of trading against natural buy-side liquidity, Liquidnet commissioned IHS Markit to examine all buy-side to buy-side trades executed on Liquidnet Fixed Income in the US and Europe during the 15-month period between Q1 2017 and Q1 2018. 

"The fixed income market has been slow to embrace TCA as historically it's been difficult to measure and results easily contested," said Kevin McPartland, Head of market structure and technology research at Greenwich Associates. "However, as data become more readily available and analytics more sophisticated, ensuring best execution in the bond market is quickly becoming more science than art." 

"Even though TCA is not the only metric that our Members focus on, especially given some of the challenges with corporate bond data, it is nevertheless an excellent tool to assess execution quality across different venues and counterparties," said Constantinos Antoniades, Head of fixed income at Liquidnet. "Trading with other buy-side Members in Liquidnet is becoming more compelling by the day, especially with our rapidly growing buy-side liquidity pool." 

Liquidnet Fixed Income reported record liquidity in June 2018 with more than US$20 billion in average daily buy-side liquidity, including more than 900 buy-side blocks daily. 

 



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site

More on:  Technology update