TP ICAP’s Liquidnet expands EM bond offering with access to South Africa

abdelaziz Fathi

Liquidnet, an institutional trading and equities network, is onboarding South African institutions onto its electronic bond trading platform, in partnership with its parent TP ICAP’s arm in the country.

The agency broker announced an initiative to bring more than 20 asset managers and pension funds who represent the majority of the global liquidity in local rand denominated debt. Additionally, the move caters to Liquidnet’s investors who are actively trading emerging markets. Thanks to its alliance with TP ICAP, they now have access to new liquidity in the South African bond market.

The move is intended to boost Liquidnet’s emerging markets franchise and offer a range of execution services including client coverage, sales trading and trading. The strategic integration also leverages the existing geographic infrastructure and expertise within the TP ICAP Group.

Participants in Liquidnet’s EM business nearly doubled in less than four years, from 90 asset managers in 2018 to over 390. The company’s coverage also extends to six local debt markets including Mexico, Turkey, South Africa, Czech Republic, Hungary, and Poland.

More about Liquidnet..

Mark Russell, Global Head of Fixed Income at Liquidnet, comments: “Liquidnet continues to excel in bringing market participants together. With 72%* of South Africa bonds owned by domestic investors, we recognize the incredible value these firms will bring to the platform for the benefit of all in the Liquidnet community.”

Paul Wilson, COO of TP ICAP South Africa, added: “Trading in South Africa continues to evolve into a more diverse, international marketplace. 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.”

Since launching in September 2015, Liquidnet’s community of fixed income asset managers has grown to 1,000 asset management and hedge fund clients, who collectively manage $33 trillion in equity and fixed income assets. This growth has been fueled by members’ ability to trade in institutional size with an average execution of $2.4 million.

Additionally, Liquidnet has been expanding its portfolio by buying more AI and alternative data offerings. The first step was the acquisition of OTAS Technologies in 2017, followed by RSRCHXchange and Prattle in 2019.

Liquidnet made headlines after TP ICAP, the world’s largest interdealer broker, acquired the private trading operator. The deal valued Liquidnet between $600 million and $700 million.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<