Instinet clients now have access to additional liquidity at the touch, filling a gap between lit venues and large in scale
blocks. This provides opportunities for price improvement and larger size fills, which minimizes clients’ footprint in the
market. Instinet’s agency aggregation services already connect to conditional and over the counter (OTC) liquidity venues,
as well as exchanges and Multilateral Trading Facilities (MTF).
The liquidity streaming relationship also provides clients with new options to interact with market maker liquidity. Clients
remain anonymous but the arrangement provides the liquidity provider with Instinet as a known counterparty, to which the
liquidity provider can offer price improvement and larger size.
As the marketplace anticipates MiFID II regulatory changes to liquidity provision, a shift toward bilateral trading
relationships and the registration of additional Systematic Internalisers (SIs), market participants will be required to
change the way they route orders, interact with, and access sources of liquidity. This relationship with Virtu reinforces
Instinet’s commitment to offer more diverse sources of liquidity, and to simplify the potential post- MiFID II execution
process for the firm’s buy and sell side clients.
“The trading environment is poised to become even more complex, while at the same time, clients will be asked to attest
to their best execution practices. Instinet’s highly configurable infrastructure can be tailored to each client, which enables
us to serve as their agency-model hub or neutral curator of diverse sources of liquidity,” said Richard Parsons, CEO of
Instinet Europe Limited.
Christiaan Scholtes, Head of EMEA Markets at Virtu, said: “As the liquidity landscape in Europe undergoes a
fundamental paradigm shift, we’re looking for intelligent ways to adapt. We see this relationship as an opportunity
to transparently and efficiently provide our risk liquidity to a broader set of participants through Instinet’s high
quality, neutral agency platform.”
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