LiquidityEdge, an electronic network for trading US Treasuries (UST), released its trading volumes data for February 2019, which set several record highs.
Users of the platform traded more than USD 31 billion (single count) on 28 February 2019 through both off-the-runs and on-the-runs. The platform also set a new weekly record in February when USD 101 billion was transacted from 21st to 28th February.
The improved trading activity was largely driven by calendar rolls, treasury auctions, and a high number of individual participants who benefited from the disclosed, direct model promoted by LiquidityEdge. This flexible structure gives the company’s clients the choice of either a one-to-one model, or a many-to-many model, which enables both disclosed and/or anonymous streaming of executable prices to create a unique order book for every client.
The company also set new records in January 2019 where the average daily volume reached $16 billion, which was a 250% increase from the January 2018 figures. According to a recent report by Greenwhich Associates, LiquidityEdge’s fast expansion can be attributed to the growing interest by buy-side participants to collectively trade via platforms with direct pricing streams.
LiquidityEdge is the first company to create a US Treasury venue that is completely different from all other firms that typically offer D2D and D2C pricing structures, which has allowed it to attract clients from RFQ platforms and typical interdealer exchanges. The venue has attracted over 100 clients since its inception who include regional dealers, primary dealers, hedge funds and asset managers.
David E. Rutter, a Wall Street veteran, founded the company in 2015 along with an enterprise blockchain company named R3.
The CEO of LiquidityEdge, Nichola Hunter commented:
This trading data demonstrates that we are successfully challenging market structure and bringing about change in the largest global fixed income market for the benefit of participants. We expect our market share to continue to grow based on our deep customer pipeline and number of clients currently integrating into the platform.