MarketAxess is introducing a ‘Diversity Dealer Initiative’, which is set to help expand credit trading among minority, women, veteran-owned broker dealers and asset managers.
As part of the new initiative, MarketAxess will implement a series of technological enhancements to its platform which will enable participants to trade with one another.
The functionality leverages MarketAxess’ anonymous all-to-all Open Trading marketplace and provides enhanced trading connections by allowing investor clients to select a diversity dealer to intermediate an Open Trading transaction.
The Open Trading network of institutional participants creates a significant pool of available liquidity, according to MarketAxess.
MarketAxess says this is delivered over 25,000 credit trading opportunities per day and over $16 billion in daily notional volume in 2020.
The pilot programme started in November 2020 and supports trading in investment grade bonds, high yield bonds and municipal securities available through the Open Trading marketplace.
Pilot participants include Loop Capital Markets, R. Seelaus & Co, BlackRock, and AllianceBernstein (AB).
Based on significant early interest in the Diversity Dealer Initiative, additional dealer and institutional investor firms are currently being on-boarded, according to MarketAxess.
Rick McVey, chairman and CEO of MarketAxess, explains: “Many institutions want to trade with a more diverse set of counterparties. Our Diversity Dealer Initiative leverages our market leading technology to advance trading relationships between our network of asset managers and minority-, women- and veteran-owned broker-dealers.”
McVey continues: “This is a powerful example of the value that Open Trading technology creates for our clients. By eliminating barriers to opportunity and building connectivity in global fixed income trading, we are able to improve liquidity for all market participants.”
Dan Veiner, global head of fixed income trading with BlackRock, adds: “As a fiduciary on behalf of clients, BlackRock is committed to cultivating and advancing diversity in all forms across our organisation and in the markets that we serve. Trading initiatives that provide broader access to opportunities will meaningfully contribute to the growth of participating diverse broker businesses.”
