Electronic US Treasuries trading venue, LiquidityEdge, signed is licensing J.P Morgan-backed Mosaic Smart Data’s MSX platform to provide analytics across its all-to-all marketplaces. 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.
As part of the deal, Mosaic Smart Data will provide LiquidityEdge with analytics to monitor and compare liquidity, which is expected 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 behavior, 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.