People love to use the word `evolution’ while discussing market structure. So we’ll extend that metaphor and change a couple of names in our taxonomy of Treasury-trading platforms.
LiquidityEdge, a venue that started last year, is planning a new centra…
People love to use the word `evolution' while discussing market structure. So we'll extend that metaphor and change a couple of names in our taxonomy of Treasury-trading platforms.
LiquidityEdge, a venue that started last year, is planning a new centralised platform where investors, banks and high-speed trading firms can trade anonymously, according to a letter from the platform to its clients. It'll also allow traders to select which types of counterparties he or she wants, or doesn't want. The platform is expected to start operating in September, according to people familiar.
At the same time, another centralised, anonymous platform, Direct Match, seems like it's close to shutting down, as Joe Rennison covered yesterday.
We classify both of those in the "All-to-All" genus of trading venues -- a close relative of the "Exchange" genus -- where investors, dealers and high-speed firms can trade anonymously. (Note: Those venues' existence remains purely theoretical in the Treasury market, since none of them have been shown to actually survive in that environment.)
Continue reading: Revising the taxonomy of trading venues