Liquidnet and TP ICAP partner to enhance trading in the South African bond market

The partnership will provide Liquidnet’s member community with access to new liquidity in the South African bond market.

Agency broker Liquidnet has partnered with TP ICAP South Africa to bring the largest South African institutions onto its electronic bond trading platform.

Over 20 local institutions, including asset managers and pension funds, are part of the initiative, representing the majority of the global liquidity in local rand denominated debt.

Asset class coverage includes all South Africa Government issued bonds, sovereign owned entities such ESKOM, TRANSNET and agencies including DEVSA and INDVSA.

More than 70% of Liquidnet’s member community are active in trading emerging markets today. Through this partnership, new liquidity in the South African bond market will now be accessible to members.

“Liquidnet continues to excel in bringing market participants together,” said Mark Russell, global head of fixed income at Liquidnet.

“With 72% of South Africa bonds owned by domestic investors, we recognise the incredible value these firms will bring to the platform for the benefit of all in the Liquidnet community.”

Since 2018, participants in Liquidnet’s emerging markets business have increased from 90 asset managers to more than 390 today.

In addition to covering emerging markets government bonds in hard and local currency, Liquidnet’s coverage extends to six local markets including Czech Republic, Hungary, Mexico, Poland, South Africa and Turkey.

“Trading in South Africa continues to evolve into a more diverse, international marketplace,” said Paul Wilson, chief operating officer of TP ICAP South Africa.

“We have a 30-year track record in the country of being one of the best liquidity providers for this market and partnering with Liquidnet will allow us to deepen our liquidity proposition and elevate the service we provide to our customers.”