TECHNOLOGY

JP Morgan adds block liquidity through SLS

Service launched by SIX Swiss Exchange and Liquidnet provide block liquidity for institutions.

By Hayley McDowell hayley.mcdowell@strategic-i.com March 17, 2017 10:45 AM GMT

JP Morgan has signed up to a block liquidity service run by SIX Swiss Exchange and Liquidnet (SLS) to expand its liquidity pool for clients.

SLS will provide block liquidity which both firms said has ‘unrivalled’ average execution size, maximum price improvement and minimal market impact.  

Participants can use existing connections without additional fees or contractual agreement, SIX Swiss Exchange said.

Launched in 2011, the liquidity pool consists of over 830 buy-side institutions trading more than 3,100 large-, mid- and small-cap stocks across 13 markets.

The SLS partnership was the first time an exchange and a trading network had joined forces. SIX Swiss Exchange members are able to direct executable block orders to Liquidnet’s global trading network.

Chris Andrew, executive director at JP Morgan, explained the partnership will “add a unique pool of high quality liquidity to our client offering, consistent with our goal to provide the most diverse and optimal liquidity access.”

Recently, JP Morgan predicted it would see around a quarter of its total markets revenues shift to electronic execution.

Daniel Pinto, CEO of JP Morgan’s corporate and investment banking (CIB) division, explained changes in market structure could see a potential $5.5 billion in revenue move to electronic execution.