New York - Liquidnet, the institutional trading network, has announced the launch of Virtual High Touch (VHT) for Fixed Income. VHT is an intelligent execution workflow designed to augment the corporate bond trader's decision making process. It evaluates order characteristics, market data, liquidity conditions, and user preferences to suggest an optimal execution strategy for different groups of orders.
Virtual High Touch enables Liquidnet Members to manage different order types through multiple liquidity search options across both dark and lit protocols. The goal is to help Members find natural liquidity for their larger, harder-to-trade orders by targeting latent liquidity, and help achieve mid-price execution for their more liquid, easier-to-trade bond orders.
VHT also provides a solution for MiFID II, as decisions made along the execution process are automatically captured in an electronic audit trail to comply with regulatory and best execution requirements.