Flow Traders Takes a New Market Position as an Active Liquidity Provider on MarketAxess

Rhea-AI Summary

Flow Traders has announced its commitment to become a name-disclosed liquidity provider for U.S. high yield corporate bonds, Euro-denominated investment grade and high yield bonds, and emerging market sovereign bonds via the MarketAxess platform. This move follows years of providing anonymous liquidity and aims to enhance transparency and efficiency in trading. The collaboration will also see Flow Traders contribute streaming prices for U.S. high yield corporate bonds on the MarketAxess Live Markets order book, which has processed over $2 trillion in trades in 2021.

Positive

• Flow Traders becomes a name-disclosed liquidity provider on the MarketAxess platform, enhancing transparency for institutional investors.
• The company will contribute streaming prices for U.S. high yield corporate bonds, potentially increasing trading liquidity.
• MarketAxess reported over $2 trillion in global credit trades in 2021, indicating strong market activity.

Negative

• None.

NEW YORK and AMSTERDAM, Dec. 07, 2021 (GLOBE NEWSWIRE) -- Flow Traders (Euronext: FLOW) and MarketAxess Holdings Inc. (Nasdaq: MKTX) today announced that Flow Traders has committed to become a name-disclosed liquidity provider in U.S. high yield corporate bonds, Euro-denominated investment grade and high yield bonds and emerging market sovereign bonds through the MarketAxess trading platform. Flow Traders is also actively contributing streaming prices as a market maker for U.S. high yield corporate bonds on the anonymous Live Markets™ order book.

Following many years of providing anonymous liquidity through MarketAxess’ Open Trading marketplace, Flow Traders is now becoming a name-disclosed liquidity provider on the MarketAxess trading platform for global credit trading products. This ultimately allows institutional investor clients to select Flow Traders by name when submitting a disclosed inquiry, enhancing anonymous liquidity already provided through Open Trading.

Ramon Balje, Head of Fixed Income EMEA, Flow Traders, commented, “The evolution in the corporate bond market continues to accelerate, mainly driven by developments in technology and the availability of higher quality data. Flow Traders is a strong advocate of bringing greater transparency, cost reduction and improved efficiency. Therefore, we’re thrilled to expand our offering by becoming an active liquidity provider on the MarketAxess trading platform.”

Flow Traders are also actively contributing streaming prices in U.S. high yield to the MarketAxess Live Markets order book. Leveraging the anonymous all-to-all Open Trading marketplace, Live Markets provides a single view of two-way, actionable prices for the most active U.S. investment grade and U.S. high yield bonds, including recently issued debt, benchmark issues and news-driven securities. Live Markets gives institutional credit investors and dealers the ability to place resting live orders in the market and engage firm prices provided by dealers and investors with a single click. Flow Traders joins Barclays, Goldman Sachs and another streaming liquidity provider as dedicated market makers for Live Markets.

Matheus Pereira, Head of Fixed Income Americas, Flow Traders, commented, “We are delighted to become a name-disclosed liquidity provider on the MarketAxess trading platform. This is another proof point that market participants are looking to connect with alternative liquidity providers like Flow Traders. To expand our offering on MarketAxess further, we will also be contributing streaming prices for U.S. high yield corporate bonds to the Live Markets order book, another mark of our commitment to innovation.”

Richard Schiffman, Head of Open Trading with MarketAxess, added, “Flow Traders is a true change maker, bringing new and important sources of liquidity to the market, and we’re thrilled to be working with them in all aspects of trading on our platform. Matched with our unparalleled global network and innovative Open Trading solutions, Flow Traders brings meaningful pricing capabilities to our global network of institutional investors and dealers.”
  
Over $2 trillion of global credit was traded over the MarketAxess platform among over 1,800 active investor and dealer participants in the first three quarters of 2021. Of that, 32% was traded via Open Trading in the same period. The enhanced global liquidity offered through Open Trading drove estimated transaction cost savings^* of $445 million for both liquidity takers and liquidity providers in the first three quarters of 2021.

*Estimated liquidity taker cost savings is defined as the difference between the winning price and the best disclosed dealer cover price. Estimated liquidity provider cost savings is defined as the difference between the winning price and then current Composite+ bid or offer level (offer if the provider is buying, bid if provider is selling) at the time of the inquiry.

About MarketAxess
MarketAxess operates a leading, institutional electronic trading platform delivering expanded liquidity opportunities, improved execution quality and significant cost savings across global fixed-income markets. A global network of over 1,800 firms, including the world's leading asset managers and institutional broker-dealers, leverages MarketAxess' patented trading technology to efficiently trade bonds. MarketAxess' award-winning Open Trading^® marketplace is regarded as the preferred all-to-all trading solution in the global credit markets, creating a unique liquidity pool for a broad range of credit market participants. Drawing on its deep data and analytical resources, MarketAxess provides automated trading solutions, market data products and a range of pre- and post-trade services. For more information, please visit www.marketaxess.com.

About Flow Traders
Flow Traders is a leading global financial technology-enabled liquidity provider in financial products, historically specialized in Exchange Traded Products (ETPs), now expanding into other asset classes. Flow Traders ensures the provision of liquidity to support the uninterrupted functioning of financial markets. This allows investors to continue to buy or sell ETPs or other financial instruments under all market circumstances. Our work continues to make investing cheaper and more accessible for investors across the globe. We continuously grow our organization, ensuring that our trading desks in Europe, the Americas and Asia can provide liquidity across all major exchanges, globally, 24 hours a day. Founded in 2004, we continue to cultivate the entrepreneurial, innovative and team-oriented culture that has been with us since the beginning. Please visit www.flowtraders.com for more information.

MarketAxess Media Relations Contacts:
Kyle White
MarketAxess Holdings Inc.
+1 212 813 6355
kwhite@marketaxess.com

Davis MacMillan
RF | Binder
+1 212 994 7509
MarketAxessPR@rfbinder.com

Flow Traders Media Relations Contact:
Laura Peijs
Flow Traders
+31 20 799 6125
lpeijs@flowtraders.com

FAQ

What does Flow Traders' new role as a liquidity provider on MarketAxess involve?

Flow Traders will provide name-disclosed liquidity for U.S. high yield corporate bonds and Euro-denominated bonds on the MarketAxess platform.

How much global credit was traded on MarketAxess in 2021?

MarketAxess reported over $2 trillion in global credit trades among more than 1,800 participants in the first three quarters of 2021.

What are the benefits of Flow Traders' collaboration with MarketAxess for investors?

The collaboration aims to enhance transparency and efficiency in bond trading, offering investors the ability to select Flow Traders by name when submitting inquiries.

What is the significance of the Live Markets order book in bond trading?

The Live Markets order book provides a single view of actionable prices for U.S. investment grade and high yield bonds, facilitating better trading opportunities.