Northern Trust providing outsourced trading services to BondBloxx, an issuer of fixed income exchange traded funds (ETFs) which recently surpassed US$1 billion in assets under management (AUM).
BondBloxx is trading through Northern Trust’s Integrated Trading Solutions (ITS) service to boost its access to the bond market, increasing its connectivity to institutional liquidity counterparties while using the resources of Northern Trust’s fixed income trading team.
Fixed income ETFs have netted inflows of US$52 billion through the end of the first quarter, according to BondBloxx, representing 66% of total ETF flows over that period. “Partnering with Northern Trust to outsource our trading operations has allowed us to quickly grow our business,” said Leland Clemons, founder of BondBloxx. “We have gained access to asset class and markets expertise without having to scale an internal trading infrastructure, which allows us to focus on enhancing the product mix and investment insights we offer to our clients.”
“Our partnership with BondBloxx has been highly effective, allowing them to improve their flexibility and liquidity while expanding access to markets, which is crucial to their growth trajectory,” said Stephanie Farrell, head of integrated trading solutions, Americas at Northern Trust Capital Markets. “ITS can support multiple types of asset managers, including long-only, fixed income and alternative, and we look forward to continuing to support BondBloxx as they grow.”
Northern Trust’s outsourced trading model offers trading in equities and fixed income across global markets, coverage from multiple trading locations, access to liquidity at a scale institutional level and an integrated middle and back-office service. Integrated Trading Solutions and its parent division Institutional Brokerage are both part of Northern Trust Capital Markets, which also provides foreign exchange, securities lending and transition management services. Rathbone Unit Trust Management recently revealed that it had outsourced its trading to Northern Trust late last year.
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