TP ICAP connects dealers to Liquidnet’s New Issue Trading protocol

Dan Barnes

TP ICAP, the interdealer broker, market infrastructure and information provider, is enabling dealers to join the buy-side in placing orders and trade directly on the order book of Liquidnet’s New Issue Trading (NIT) protocol for bonds.

Liquidnet launched the NIT protocol – an electronic system for trading new issues in Europe – to its network of over 500 global firms in September 2021. Expanding access to the protocol should enable more than 100 of TP ICAP’s major dealer clients to also connect, allowing the buy-side and the sell-side to trade together for the first time via a TP ICAP screen. Dealer access to the new issue screen is via Fusion – TP ICAP’s electronic portal through which its clients can access the group’s aggregated liquidity and post-trade services.

Nicolas Breteau, CEO of TP ICAP, said, “Making it possible for TP ICAP’s dealer clients to connect to the innovative NIT protocol means a deeper liquidity pool and more efficient trading experience for all – buy-side and sell-side. It’s another compelling example of what the combined strengths of TP ICAP and Liquidnet bring to market, and that we are on track in executing our growth plans.”

Mark Russell, global head of fixed income for Liquidnet, said, “The electronification of new issue trading is one facet of Liquidnet’s overall Primary Markets initiative. We were the first to introduce a new issue trading protocol in EMEA, and today’s announcement helps to industrialise that innovation by taking it to a new audience. The outcome is improved liquidity, more efficient new issue trading, while still maintaining anonymity.”

The announcement builds on TP ICAP’s acquisition of Liquidnet in March 2021. It follows the phase one launch of Liquidnet Primary Markets in September 2021, providing investors with new deal information in real-time, with the potential to setup in their order and execution management systems (O/EMS) for faster processing, and to facilitate bond trading in the grey market – when securities are about to be issued – and immediately post-pricing.

©Markets Media Europe, 2022