Evolving Credit Markets: The Vision Behind TP | Bonds & Fixed Income

With Byron Cooper-Fogarty, CEO, Neptune Networks, and David Johnsen, Head of Fixed Income, Liquidnet

Following the latest announcement of the acquisition of Neptune Networks by TP ICAP Group and the creation of a full-service, international dealer-to-client credit business in partnership with 9 main investment banks, Byron Cooper-Fogarty, CEO of Neptune Networks, and David Johnsen, Head of Fixed Income at Liquidnet, supplied unique behind-the-scenes insights on this contributed Q&A.

What had been the important thing drivers for this acquisition, and what are you aiming to attain?

Byron Cooper-Fogarty: From Neptune’s perspective, we’ve got 34 taking part Dealers contributing real-time axe and stock information to institutional buy-side shoppers and that’s one thing we’ve been doing efficiently for almost a decade. We present information with out repurposing it for our own gain and that’s been key to building trust. But we knew we couldn’t stop there. Adding execution capabilities was the logical subsequent step to reinforce what we offer. Liquidnet is the proper match.

David Johnsen: It actually is a excellent match. Neptune is the chief in pre-trade bond information, and Liquidnet has a buy-side community of over 500 Members. Between the 2 companies we’ve got a large, international, dealer-client community. Now, our mission is to permit members of the mixed community to faucet into it, on their own phrases, in ways in which add worth to their business and improve the market construction.    

The credit market faces challenges round fragmentation and uneven adoption of electronification. While some areas—like authorities bonds and extremely liquid company debt—have embraced digital trading, others stay underdeveloped as a result of structural and technological hurdles.

By partnering, we’re tackling these challenges head-on to create a full-service, international D2C credit business that integrates real-time axe and supplier stock information and superior digital execution. It’s about unlocking new alternatives for sellers and shoppers alike. There’s a lot of work forward however we’re ranging from an thrilling place.

Can you inform us more about this D2C credit business?

Cooper-Fogarty: With this partnership, we’re creating the muse for a actually symbiotic relationship between sellers and shoppers based mostly on trust and collaboration, and one which delivers higher trading alternatives for each side.

What can the market anticipate from Neptune and Liquidnet within the close to time period?

Johnsen: The first alternative we see from this collaboration is with our D2D protocol, Rebalance. We’ve been making main technical upgrades to the platform. Paired with the strengths of the mixed community, we consider it’s going to ship a markedly improved expertise for sellers. 

Later within the 12 months, we’ll start to actually notice the potential of the mixed D2C community.  We have new protocols within the works that will likely be each very easy to faucet into and that can conveniently add worth to each sellers and shoppers.   

Ultimately, we need to give market contributors more flexibility to have interaction in the best way that works best for them. They’ll have the liberty to operate on their own phrases, with the added benefit of built-in, high-quality information and execution capabilities.

Cooper-Fogarty: We’ll proceed to work intently with our supplier and buy-side shoppers to evolve and improve our information choices. At the identical time, we’re collaborating with Liquidnet on the supply of a absolutely built-in resolution that mixes information and execution seamlessly.