Direct Access Partners announces launch of ETF Liquid

By Tali David

Minneapolis, Jan. 12 - Direct Access Partners, LLC announced the launch of ETF Liquid, a centralized source of aggregated liquidity in the overnight market for exchange-traded funds, according to a press release.

ETF Liquid offers enhanced pricing and greater market depth for Direct Access' institutional client base, the company said. The group acts in an agency-only capacity, ensuring conflict-free, anonymous trading.

The new division will provide buy-side customers with enhanced trading options for international ETFs. During volatile periods, ETFs that reflect international markets trade solely on the basis of U.S. domestic supply and demand and not on the underlying net asset value of the component equities. ETF Liquid will permit institutional clients, including mutual funds and hedge funds, to trade ETFs in close relationship to the movement of the underlying equities.

"As the ETF market expands, ETF Liquid fills a clear need for institutional customers trying to gain international exposure or hedge positions at a net asset value that reflects the market - not the current U.S. market environment," Gerry O'Donnell, co-leader of the new division, said in the release.

"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 U.S. hours when the underlying ETF basket can be priced efficiently to reflect market conditions and may move into line," O'Donnell added.

O'Donnell will lead the team along with Matt Brown. Both have 15 years of experience in the listed, over-the-counter and electronic trading markets in a wide range of financial instruments.

Direct Access chief executive officer Ben Chinea stated in the release: "Our unique platform will enhance ETF Liquid in non-U.S. 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 U.S. market resumes the following day."

Direct Access Partners is a New York-based trading partner.

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