TP ICAP has invested in a FinTech start-up aimed at unlocking liquidity in global credit markets through its web-based application.
LiquidityChain allows users to be connected using a dark pool, non-execution platform, which incorporates an alert system to highlight potential trading opportunities.
Parties will be able to connect through broker Mirexa Capital, part of TP ICAP’s institutional services business, to negotiate and execute trades and align trading interests.
LiquidityChain uses the same hybrid model used across all of TP ICAP’s brands, which combines market experience and relationships provided by voice brokers alongside electronic services.
Global head of electronic broking at TP ICAP, David Perkins, explained numerous factors, including regulation, low interest rates and balance sheet constraints have impacted bond market liquidity in recent years.
“A number of technology and trading platforms have tried to solve these issues, yet liquidity still remains a problem in the market. That is why LiquidityChain is so important; it combines smart technology with human expertise,” he said.
Richard Smith, CEO at LiquidityChain, added the partnership with TP ICAP as both an investor and provider of trade execution services, will be “invaluable as we continue to help users in the credit markets looking for additional liquidity”.