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is also a key differentiator . Although Liquidnet has managed to cement itself in the more competitive dark space for equities , TP ICAP has the chance to burst into the credit market , which has typically been dominated by three incumbent platforms . Major platforms like Tradeweb and MarketAxess have been quick to cater for evolving execution trends , developing new tools for portfolio trading , for example , which is now a major part of the market .
While Liquidnet
" It ’ s about helping the Liquidnet equities platform get accepted as a fuller service market participant , rather than solely a dark and block specialist ."
JOHN RUSKIN , CEO OF AGENCY EXECUTION , TP ICAP
John Ruskin , CEO of agency execution , TP ICAP
is yet to unveil a portfolio trading solution and demand from the buy-side for more ‘ full-service ’ brokers continues to increase , TP ICAP has the chance to capture a percentage of business by developing new tools and protocols through Liquidnet .
The credit market is more fragmented and complex than equities given there is no exchange traded reference price . Regulatory interventions such as the Volcker Rule has also forced dealers to wind down the balance sheets that they were willing to put to work in the credit market , sparking more electronic trading and the rise of the buy-side price maker .
“ The electronic market will continue to evolve and grow . I think buy-side-to-buy-side trading will grow over time , but we have to remember that the bank business model is different from asset management . The regulatory influences and constraints are also different . So , the drivers of buy-side and sell-side trader behaviour are not the same . We want to offer Liquidnet members and banks a range of trading protocols , and to make each trading protocol as effective for participants as we can ,” Nader says .
“ We have a number of ways in mind to expand and enhance Liquidnet ’ s credit offering , which we will be discussing with our buy- and sell-side client base over the coming months , but I think it is important to note that we want to help users to transact , not to take a view on how the market structure should evolve . Market structure is something market participants should decide , rather than market operators .”
Feedback from clients on the Liquidnet deal has been very positive , but there ’ s reportedly concern from the buy-side that opening the door to dealer liquidity could in some sense corrupt the market that Liquidnet has established . Describing TP ICAP as a venue operator , Nader continues that TP ICAP doesn ’ t take risk and doesn ’ t want to jeopardise any relationships .
“ Trust is incredibly important in all of the dealer-to-dealer , dealerto-client , and client-to-client , and
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