Institutional trading network Liquidnet is set to launch an institutional dark pool for corporate bonds, in the third quarter this year.
Liquidnet is integrating seven order management systems, which execute securities orders, to provide the connectivity and access to trading opportunities that are not currently available in the corporate bonds market.
Liquidnet said in a news release Thursday the development will centralize “a critical mass” of corporate bond liquidity to market participants.
“By connecting to (clients') existing order management systems, asset managers will have direct access to a protected venue that allows them to exchange natural liquidity with minimum effort and minimum information leakage,” said Constantinos Antoniades, head of Liquidnet fixed income, in the news release. “The functionality, protocols and connectivity of our dark pool will create significant new liquidity in the broader corporate bond universe — not just in the most liquid segment of the market.”