London - Quote MTF, has announced details of QLX, Europe's first Liquidity-on-Demand hybrid book. Scheduled for launch in June, QLX will offer equities trading participants increased control over how, and with whom, they trade.

On QLX, the liquidity seeker triggers a Request for Trade for a symbol without indicating price, side or size. Participants can respond to this Request for Trade by making a market for the symbol. The liquidity seeker interacts with this market according to pre-defined, price-time rules.

Tamas Madlena, Quote MTF CEO, comments: "The liquidity seeker is initiating a 20-millisecond auction which levels the playing field on latency, generates liquidity-on-demand, and because firms are reacting to only genuine order flow, QLX reduces messaging and load on technology. Importantly, because no information is leaked to market, there is minimal market impact."

The system provides subscribers with post-trade information where each trading participant is assigned a unique identifier. Using this identifier, subscribers can over time assess the value of trading with certain counterparties and can choose to discontinue trading with anyone where they find the execution quality deficient.

Madlena continues: "We have had highly positive feedback from market practitioners who need to address the concerns of clients who feel they are not operating on a level playing field. QLX addresses a pressing business need, as you are effectively building up a matrix of peer-to-peer relationships so you can judge the results for yourself. It means there is no longer a need to bracket firms together and call them toxic, which limits perfectly legitimate and valuable streams of passive liquidity."