Liquidnet intends to launch a dark pool for corporate bonds in Q3, focused on institutional investors.
The firm, which already operates an institutional-only dark pool for equities, said it will launch the new pool in the coming months and has signed up seven order management system (OMS) providers to offer day-one access.
“Our clients have asked us for a dark pool that enables them to match based on passive blotter-level dark liquidity. By connecting to their existing order management systems, asset managers will have direct access to a protected venue that allows them to exchange natural liquidity with minimum effort and minimum information leakage,” said Constantinos Antoniades, head of Liquidnet Fixed Income.
OMS providers that will offer access include Charles River, Eze, Fidessa and LineData, while some clients are also integrating their custom OMS to use the platform.
Paul Nokes, CEO of Fidessa Buy-side, said: "Against the backdrop of greater regulatory scrutiny and tighter capital adequacy requirements, our buy-side customers are finding it increasingly hard to access liquidity in the fixed income markets. Providing them with direct access to Liquidnet's dark pool for corporate bond liquidity is one of a number of key steps we've taken to ensure they can trade these instruments efficiently."
Liquidnet’s move into fixed income stems from its acquisition of fixed income trading platform Vega-Chi last year.