Liquidnet Strengthens Fixed Income Team, Hires Nichola Hunter as Global Sales Head

Liquidnet, the dark pool Dark Pool Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek to sway markets through enormous trading positions or incur adverse prices due to their large transactions. Of note, dark pools don’t require investors to disclose their trading intentions prior to trade execution.As such, there is no order book or ledger available to the public while performed trades are released after a delay in the ticker tape, also known as the system that reflects real-time exchange-listed data. More than 48 dark pools have been registered with the Securities and Exchange Commission (SEC) while dark pools can be divided into three classifications. Dark pools that derive their own price rates from order flow implement an element known as price discovery. This is seen characteristic of dark pools that are broker-dealer owned and electronic market makers. Electronic market makers, such as Getco, are independently operated dark pools who function as administrators for their own account. Examples of broker-dealer owned dark pools include Goldman Sachs’ Sigma X, Morgan Stanley’s MS Pool, and Citibank’s CitiMatch. Dark pools that are broker-dealer owned are structured to fulfill the needs of their clients and sometimes their own team of proprietary investors. An exchange-owned or agency broker dark pool serve as agents, not administrators, while prices stem from exchanges such as the National Best Bid and Offer (NBBO). An example of exchange-owned dark pools includes the NYSE Euronext while the Instinet Liquidnet is an example of an agency broker dark pool. Despite the notoriety that surrounds dark pools, dark pools serve an essential function and can significantly reduce market sways by large scale trades. Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek to sway markets through enormous trading positions or incur adverse prices due to their large transactions. Of note, dark pools don’t require investors to disclose their trading intentions prior to trade execution.As such, there is no order book or ledger available to the public while performed trades are released after a delay in the ticker tape, also known as the system that reflects real-time exchange-listed data. More than 48 dark pools have been registered with the Securities and Exchange Commission (SEC) while dark pools can be divided into three classifications. Dark pools that derive their own price rates from order flow implement an element known as price discovery. This is seen characteristic of dark pools that are broker-dealer owned and electronic market makers. Electronic market makers, such as Getco, are independently operated dark pools who function as administrators for their own account. Examples of broker-dealer owned dark pools include Goldman Sachs’ Sigma X, Morgan Stanley’s MS Pool, and Citibank’s CitiMatch. Dark pools that are broker-dealer owned are structured to fulfill the needs of their clients and sometimes their own team of proprietary investors. An exchange-owned or agency broker dark pool serve as agents, not administrators, while prices stem from exchanges such as the National Best Bid and Offer (NBBO). An example of exchange-owned dark pools includes the NYSE Euronext while the Instinet Liquidnet is an example of an agency broker dark pool. Despite the notoriety that surrounds dark pools, dark pools serve an essential function and can significantly reduce market sways by large scale trades. Read this Term operator owned by TP ICAP, announced on Monday the appointment of Nichola Hunter as the Global Head of Sales for Fixed Income. She will be based in London and report directly to Mark Russell, who is Liquidnet’s Global Head of Fixed Income.

According to the company’s press release, Hunter will take the responsibility for growing Liquidnet’s client relationships.

“The combination of Liquidnet’s state-of-the-art electronic platform covering all aspects of the trading lifecycle, combined with the distribution and reach that comes with being part of TP ICAP group, the world’s largest interdealer broker, distinguishes our offer in the market,” Hunter said in a statement.

“I am excited to join the team and to help drive the next stage in its growth strategy.”

Strong Background in the Finance Industry

Hunter brings more than 25 years of experience to Liquidnet, which became a part of TP ICAP last year.

She joined Liquidnet from MarketAxess, where she was the Head of Rates for more than a couple of years. She joined that company after it acquired LiquidityEdge, where she spent five years, first as the COO and then as the CEO.

Further, she worked at ICAP for over eight years in several executive roles, including as Co-Head of EBS Market, the Global Head of Product Management for EBS, and also the Global Head of Client Services for the company’s Electronic Broking business.

“Our Fixed Income business is developing at pace,” said Russell. “We’ve also expanded geographically.”

“As we continue on our mission to support the full lifecycle of a bond and a trader’s need for execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Read this Term choices, Nichola’s knowledge, and expertise will be a key factor in our ability to harmonize the offering and ensure it is truly tailored to the needs of the industry.”

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Earlier this year, Liquidnet onboarded James Rubinstein as the Head of Execution and Quantitative Services (EQS) for the Americas. The company brought in £62 million in revenue in the first quarter of 2022, thus contributing significantly to its parent’s quarterly figures.