Electronic US Treasuries trading venue, LiquidityEdge, signs a multi-year deal to license Mosaic Smart Data’s award winning MSX platform to provide analytics across its innovative all-to-all marketplaces.

As part of the deal, Mosaic Smart Data will provide LiquidityEdge with a suite of analytics to monitor and compare liquidity to assist in ensuring smooth market operation, improving trading efficiency, venue performance and facilitating growth. Additional suites of analytics will aid understanding of transaction flow and participant behaviour, and calculate transaction cost and market impact.  MSX anomaly detection tools, built on machine learning models, will identify unusual activity in the market that may indicate an emerging issue, allowing preventative action to be taken to maintain market operations.

As market liquidity in fixed income diminishes, the ability for trading venues to identify potential challenges on their platform early and act proactively is becoming increasingly vital to maintaining efficient market operation.

The deal is the conclusion of a lengthy collaboration between LiquidityEdge and Mosaic Smart Data to develop analytics tools specifically for trading venues. The analytics will initially be used by LiquidityEdge to monitor and improve the performance of the venue, as a stepping-stone to providing insights directly to market participants as an additional service.

The MSX platform will be cloud deployed and fully managed by Mosaic Smart Data with access by LiquidityEdge under a Software-as-a-Service agreement.

Nichola Hunter, CEO at LiquidityEdge, said:

“We built LiquidtiyEdge to challenge existing market structures and ‘business as usual’ in the Treasuries market. So, we’re always on the lookout for innovation which will enable us to deliver a better experience to our users. The MSX platform harnesses the power of our order book to deliver finely grained analysis and actionable insights delivering performance improvements for LiquidityEdge and our users.”

Matthew Hodgson, CEO and Founder of Mosaic Smart Data, said:

“Data analytics is becoming the bedrock of financial market participants’ business. When you’re able to utilise your data effectively to deliver better performance for your clients, it attracts more business which enhances your analytics with additional data. It is a virtuous circle and a powerful competitive advantage for trading venues and market participants.

“LiquidityEdge is an innovative and forward-thinking trading venue which is seeing record volumes driven by their focus on creating a more efficient and seamless trading experience for their clients. It was the perfect fit for us and we’re looking forward to continuing to collaborate to iterate our software for trading venues.”