Direct Access Partners has launched ETF Liquid providing a centralised source of aggregated liquidity in the overnight market for Exchange Traded Funds. ETF Liquid offers enhanced pricing and greater market depth for Direct Access Partners' institutional client base. The group acts in an agency-only capacity ensuring conflict-free, anonymous trading.
The new division provides DAP's buy side customers enhanced trading options for international ETFs. During volatile periods ETFs that reflect international markets trade purely on the basis of US domestic supply and demand -- not on the underlying NAV of the component equities. ETF Liquid permits our institutional clients including mutual funds and hedge funds to trade ETFs in closer relationship to the movement of the underlying equities.
Gerry O'Donnell, who will co-lead the new division, says: "As the ETF market expands, ETF Liquid fills a clear need for institutional customers trying to gain international exposure or hedge positions at an NAV that reflects the market -- not the current US market environment. For example, ETF Liquid provides liquidity in an agency capacity in off-market hours to fill "away" limit orders that may be left as GTC orders, and filled during closed US hours when the underlying ETF basket can be priced efficiently to reflect market conditions, and may move into line."
Ben Chinea (pictured), CEO of Direct Access Partners, says: " Our unique platform will enhance ETF Liquid in non-US market hours and assist our institutional client base implement a wide range of hedging strategies as well as the ability to take advantage of overnight volatility, which often times can be overlooked when the US market resumes the following day."
The team will be headed by Gerry O'Donnell and Matt Brown. Both professionals have 15 years experience each in the listed, OTC and electronic trading markets executing orders in a wide range of financial instruments.