Mostly… fixed income and cross product eTrading

May 8, 2007

Liquidity Hub – news

Filed under: 2015, etrading — holky @ 8:40 am

Liquidity Hub warming up in the wings…. press release in WSJ “Bankers Plan Bond-Quote System” (though only WSJ Europe?) says a group of the world’s largest investment banks is seeking to wrest back control over the electronic trading they do with customers by launching a system that will distribute bond and derivatives prices to clients…

A group of at least 12 investment banks will announce this week that they plan to launch a system, called LiquidityHub, in July, that will distribute bond and derivatives prices to clients. The consortium plans to begin with prices on euro and US-dollar swaps and US Treasurys and later expand to European government bonds and possibly mortgage-backed securities, according to some of the banks involved.

The banks include Bank of America, Barclays Capital, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley, Royal Bank of Scotland Group and UBS. ABN Amro also will announce this week it is joining LiquidityHub, according to a person familiar with the matter.

While LiquidityHub intends to use existing trading platforms and possibly exchanges for its own feed, it will be a single source for prices from the banks involved.

So …  next step letting the world know the details re how, where, why etc ..

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4 Comments »

  1. It’s official. The “where” is public – it’s Bloomberg and Reuters. “Trading will be available from existing desktop connections to Bloomberg and Reuters’ platforms…”

    Comment by holky — May 8, 2007 @ 10:08 am

  2. Does anyone really think the prices/data/connectivity to liquidity hub will surpass any current single dealer offering either screen based (net or vendor) or direct connected? Why would dealers offer better on a multi dealer platform? LH is simply an investment by these dealers with one very smart dealer, GS, leading all the others on wonderful paths of distraction.

    Comment by lacidar — May 9, 2007 @ 1:14 am

  3. Interesting point lacidar. GS are the driving force, as I understand it, behind Projects Boat, Turquoise & Fusion as well. Very much their strategy….or so it seems?????

    I think what LH will bring to the buyside is a committed group of dealers offering the same (?) prices from the single-dealer environment in a competitive framework….maybe I should write their marketing spiel? 🙂

    Comment by waratah — May 9, 2007 @ 12:43 pm

  4. Yes waratah, exactly the point regarding Boat, Turq, & Fusion. Isnt that the true common denominator, GS and a direct investment opportunity. Especially in light of ISE selling for 2.x billion!

    Regarding committed groups of dealers: Isn’t that the opposite of what the markets truly want? It’s about competition and gettin the best value and service. If Ford still manufactured Model T’s or VW the same old rear engine Beetle would anyone buy that over Kia or Hyundai? Never! The next thing brought to the buyside will be very new. Newer than the NYSE ARCA model and their zero cost pricing for adding liquidity.

    IMHO

    Comment by lacidar — May 10, 2007 @ 10:40 am


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