News & Views

Liquidnet innovation enables Canadian traders to tap into hidden institutional global block liquidity

Liquidnet announced the launch of Targeted Invitations as part of its introduction of Liquidnet Virtual High Touch® (VHT) to Canada. VHT is a new category of buy-side technology that brings together advanced data analysis, adaptive learning algorithms, unique liquidity search tools, and real-time analytics into a new trading experience.

Liquidnet’s Dark Pool Value Index (DPVI): Character vs Consistency

In this edition of Liquidnet's Dark Pool Value Index (DPVI), Adam Sussman—Head of Market Structure and Liquidity Partnerships at Liquidnet—talks about he believes that value is best demonstrated through outperformance in a particular category when assess a dark pool. Consistency is also a desirable trait but should be treated with caution.

Adam has also highlighted the seven top block pools according our most recent release of FINRA ATS Block data. These ATSs comprised more than 70% of the Block ATS market share from May through July. The comparison between the two different data sets help illuminate the different characteristics.

Survey of asset managers finds only 6% ready for MiFID II best execution standards

Liquidnet, the global institutional trading network, published the high level findings of a recent survey of asset management firms that probed their views of best execution requirements under MiFID II. The study, entitled “Re-Engineering Best Execution,” found that just 6% of those surveyed believed they are currently ready to meet best execution requirements.  61% of respondents recognized their need to provide more granular detail to their policies, with a third planning to make changes to trading workflow, and over a quarter are specifically investing in technology to ensure a more systematic approach to best execution.

Liquidnet Announces Strategic Tech Hire to Support Growth of Virtual High Touch™ MiFID II Solutions

Liquidnet announced the appointment of Patrick Strobel as Head of Technology for EMEA. In this newly formed role, Patrick will be responsible for building out Liquidnet’s strategic IT architecture in EMEA with an emphasis on the region’s Virtual High Touch MiFID II solutions. He brings over sixteen years’ experience delivering IT solutions for investment banks such as Deutsche Bank and JP Morgan.

Liquidnet Launches Algo Ranking Model in Europe as Part of its Virtual High Touch™ MiFID II Solutions

Liquidnet, the global institutional trading network, announced that its Algo Ranking Model technology is available in Europe, building on a successful launch in the US. Using innovative technology and a multi-factor model, the Algo Ranking Model holistically profiles every order to rank execution strategies in real-time according to order characteristics, trading objectives, market conditions, and performance targets.

VIDEO: Empowering the Buy Side Through AI, Analytics and Automation (TABB)

Natasha Shamis, Liquidnet's Global Head of Product, sat down with Terry Roche at TABB's annual equities conference, "Equities 2017: Forward or Backward – Where Are We Headed." Natasha discusses how Liquidnet's Virtual High Touch™—a new category of buy-side technology that brings together advanced data analysis, adaptive learning algorithms, unique liquidity search tools, and real-time analytics into a new trading experience—helps buy side in an increasingly data-driven market.

Watch the full video.

Liquidnet’s Dark Pool Value Index (DPVI): Week of 4/24/2017

Liquidnet's Adam Sussman addresses the two week lag between FINRA’s release of the Tier 1 and Tier 2 ATS Transparency Data in his latest Dark Pool Value Index (DPVI).

Year to date, Tier 2 equities have accounted for roughly 38% of the total ATS volume, a sizable portion. Unfortunately, the Tier 2 data is released an additional two weeks after the Tier 1 data (four weeks from the original trading week). By the time the market receives the Tier 2 data, it is considerably stale. While we see no compelling reason for the additional delay, how much of a difference is there between the two data sets?

Latest Liquidnet Virtual High Touch™ Solution “Super Sizes” Block Trades Immediately After Execution

Liquidnet announced the launch of the latest product in its Virtual High Touch suite: Surge Capture. Built to take advantage of the increased volume and volatility that occurs in the market immediately following a block trade, Surge Capture soaks up additional liquidity by seamlessly placing a specially designed order in the market for any unfilled shares immediately after their initial block executes.

Liquidnet Bolsters Algorithmic Expertise in Europe

Liquidnet announced the appointment of Takis Christias as Head of Trading Strategies EMEA. Takis brings more than twenty years of experience in quantitative analysis and trading strategies and will be responsible for the continued build out of the electronic execution offering across the Liquidnet platform.

VIDEO: Seth Merrin on Liquidnet Labs (TRADE)



Liquidnet and The TRADE hosted an event in London titled ‘FinTech Innovation for Today’s Buy-Side Trader’. Seth Merrin, Liquidnet's founder and CEO, caught up with The TRADE at the event to discuss the future of FinTech for the buy side.

Watch the clip here.

Liquidnet Further Enhances Trading Platform with Acquisition of OTAS Technologies

Liquidnet, the global institutional trading network, today announced its acquisition of OTAS Technologies–a market-leading analytics platform that delivers actionable market intelligence and context directly to institutional traders and portfolio managers. OTAS’s industry-leading analytics and market insight, combined with Liquidnet’s Virtual High Touch decision-support trading platform, will help enhance the buy-side trader’s decision making process and give the trader more control over achieving best execution.

Making MiFID II Work: When is an SI not an SI?

Rebecca Healey, Liquidnet's Head of EMEA Market Structure and Strategy, dives into understanding how Systematic Internalisers (SIs) will work in practice. The European Securities and Markets Authority (ESMA) Q&A provides some clarification on what SIs are and aren’t, and what characterises SI activity.

Making MiFID II Work: Unbundling

The topic of unbundling has been one of MiFID II’s most controversial areas, generating both heated debate and high levels of anxiety. Why? Because it aims to shake apart one of the foundations of modern investment banking: trading with a broker will pay for a broker’s research. As we’ve covered in previous editions of Making MiFID II Work, some of the key aims for the new rules are to bring transparency back to the market, remove conflicts of interest, and eliminate inducements—all with the singular purpose of benefiting the end investor. To achieve this under MiFID II, execution and research will have to be paid for separately, payments will not be tied to the volume and/or value of transactions, and research services will need a pre-agreed budget. Complicating the issue even further is the fact that many firms operate in multiple global regions and cannot simply look to unbundle in Europe alone.

Liquidnet’s Dark Pool Value Index (DPVI): Week of 2/24/2017

Adam Sussman, Liquidnet's Head of Market Structure and Liquidity Partnerships, used FINRA ATS Data for a 12 week period ending 2/24/2017 to create the ranking for this Dark Pool Value Index. A higher standard deviation means the ATS shows greater change within that category. This gives us a quick way to assess the long-term strength and stability of how an ATS differentiates itself from its peers.

Liquidnet and ONEaccess Deliver Integrated Research Management Solutions for Mifid II Compliance

Liquidnet, the global institutional trading network, and ONEaccess, a Visible Alpha company and leading corporate access and research valuation platform, today announced a partnership to provide institutional investors with solutions to seamlessly manage, track, and pay for eligible research under MiFID II. This partnership between Liquidnet and ONEaccess offers clients of both companies a more efficient technology solution for managing their interactions with research content.

Making MiFID II Work: Best ex reporting

30 April 2018 is the date the buy side will need to begin producing the first detailed best execution reports—an integral part of the new world of best ex, post-MiFID II. Even though April 2018 is still some time away, firms need to start collecting the data necessary for these reports now as the first one has to cover all orders executed during 2017. Understandably, the level of detail and data required for the new best ex reporting rules are certainly causing headaches in the industry—and for good reason. Like it or loathe it, big data is coming to the buy side.

Liquidnet Broadens International Access to Canadian Equities with Expansion of Next Gen Algo Suite

Liquidnet, the global institutional trading network, today announced the full rollout of its Next Gen algo suite in Canada further enhancing access to block liquidity in the region.

The Next Gen algorithmic suite includes Liquidnet’s flagship liquidity-seeking algo, Liquidnet Dark, which looks for liquidity in Liquidnet and other dark venues. New additions for Canada include Liquidnet Barracuda, designed to simultaneously seek a large block in Liquidnet while opportunistically searching for available liquidity across external venues, and Liquidnet Sweep-Then-Post, designed to quickly and aggressively take available liquidity in order to strike tactically at attractive price levels or get small orders done.

VIDEO: Head of Liquidnet Fixed Income on Corporate Bond Liquidity (TABB)

After his panel at TabbFORUM’s 2017 Fixed Income conference: “Charting a New Course,” Constantinos Antoniades, Liquidnet’s Head of Fixed Income, sat down with the TABB Group’s Terry Roche to talk about the opportunities Liquidnet’s fixed income liquidity pool created: a centralized pool of liquidity, connectivity with OMS systems, and established protocols to get natural liquidity.

Making MiFID II Work: Taking control of best ex

Greater transparency has been at the top of nearly every regulator’s wish list for a long time. And the great hope with MiFID II is that it will be the industry’s next major leap forward in achieving best execution both more transparently and more consistently. With even greater ownership of best execution post MiFID II, the buy side will need to understand all aspects of their order flow to demonstrate that they are making the most appropriate trading decisions given the liquidity that’s available. Under MiFID II, best execution won’t be just about price; it will be the policy and process that is most important. This will require firms to collect and assess more data to evaluate performance, create new systems and controls to monitor processes, as well as publish a clear and detailed Best Execution Policy.

Liquidnet’s Dark Pool Value Index: Week of 12/05/2016

Adam Sussman, Liquidnet's Head of Market Structure and Liquidity Partnerships, talks about how the Dark Pool Value Index (DPVI) does not take into account the magnitude of difference among the dark pools. In a brute ranking system, the end results dominate the story and the difference between 1st place and 2nd place becomes easy to overlook. This can mask the fact that there are some dark pools that have meaningful differentiation – and that many are very similar.

Liquidnet Launches Innovation Hub to Streamline Delivery of New Technology to the Buy Side

Liquidnet, the global institutional trading network, today announced the launch of “Liquidnet Labs,” a virtual hub that will showcase the company’s latest technology developments. Available exclusively to the 800+ leading institutional investors around the world that comprise the Liquidnet equity Membership1 , Labs provides a sneak peek into Liquidnet’s innovations and product pipeline. It also serves as a centralized location for piloting, feedback, and testing of new features.

Liquidnet Virtual High Touch™ Arms Buy-Side Traders for the Future of Institutional Trading

Liquidnet, the global institutional trading network, today announced the launch of Liquidnet Virtual High Touch™, a new category of buy-side technology that brings together advanced data analysis, adaptive learning algorithms, unique liquidity search tools, and real-time analytics into a new trading experience. As a key component of Virtual High Touch technology, Liquidnet also announced an upgrade to its Algo Ranking Model (ARM) with Real-Time Course Correction, which has been designed to enhance the way institutional traders make decisions around algorithmic trading.

Market Volatility Drives Record Trading Results for Liquidnet APAC

Liquidnet, the global institutional trading network, today announced a record in the third quarter in Asia Pacific as buy-side Members increased trading activity amid a spike in market-moving events. Volumes rose 27% on the previous quarter with US$8.99 billion principal traded in APAC for the quarter. This included records in Japan, Taiwan, Korea, and Indonesia.

Liquidnet’s Fixed Income Platform Demonstrates Continued Momentum

Liquidnet, the global institutional trading network, today marked the first anniversary of its fixed income dark pool. Since launching in September 2015, Liquidnet’s community of fixed income asset managers has grown to 215 active firms with over 490 users who have executed a total of $3.4 billion of corporate bond trades via the Liquidnet platform efficiently, anonymously, and with minimal market impact.

Venue Selection Significantly Impacts Information Leakage for Australian Block Trades

A new study by global trading network Liquidnet has found significant differences in the volatility of block trades in the Australian market minutes before execution, depending on where trades are executed. Higher volatility implies information leakage, which may cause a significant impact on performance for institutional investors.

Introducing Liquidnet’s Dark Pool Value Index

Since FINRA began publishing ATS volume, brokers and other analysts have used the data in various ways to rate or rank the various trading venues. However, we believe that none of the analysis presents this data in a way that is relevant to asset managers. To help fill this void, Liquidnet has developed the Dark Pool Value Index that ranks each ATS based on the factors that are most meaningful to an institutional investor (market share, market share symbol rank, and trade size by symbol).

Latest Liquidnet Innovation Empowers the Buy Side to be Their Own Sales Trader

Liquidnet, the global institutional trading network, announced today the successful global rollout1 of Targeted Invitations, the latest advancement in Liquidnet’s mission to help the buy side source deeply hidden institutional liquidity. Initially launched in Europe late last year, Targeted Invitations is now also available in the U.S. and Asia-Pacific, and has already exceeded $1 billion traded2.

Liquidnet Launches Trading of Taiwan Equities

Liquidnet, the global institutional trading network, announced today that its global buy-side community of more than 800 asset managers can now trade Taiwan-listed securities directly and anonymously with one another through its platform. The addition of the Taiwanese market continues Liquidnet’s expansion in Asia-Pacific and represents its 12th market in the region and 44th equity market worldwide.

Liquidnet Fixed Income Surpasses $1 Billion Traded

Liquidnet, the global institutional trading network, today announced that their fixed income dark pool has exceeded $1B of volume traded, after just five months. Designed to provide a seamless solution for buy-side corporate bond traders, Liquidnet’s Fixed Income solution delivers a protected venue where they can trade natural liquidity in size, both safely and efficiently.

Executing Australian Blocks

A recent study concluded that where you execute large trades can have a significant impact on performance. Volatility was shown to be, on average, 250% higher for other brokers relative to Liquidnet in the one minute prior to a block execution. Significantly increased volatility prior to a block execution is an indicator of information leakage, which can have an adverse effect on execution quality. Read the summary paper here.

Liquidnet Launches Fixed Income Dark Pool to Centralize Institutional Trading of Corporate Bonds

Liquidnet, the global institutional trading network, today announced the launch of their Fixed Income dark pool that facilitates direct, peer-to-peer trading of corporate bonds among asset managers in the US, Canada and Europe, creating a much-needed hub of institutional liquidity. Liquidnet has enrolled more than 120 asset managers, representing a critical mass of liquidity and a sizeable portion of assets under management for high yield and investment grade bonds in the US. At launch, the platform will enable trading for US and European corporate bonds (high yield and investment grade), emerging market corporate bonds, and European convertible bonds.

Fixed Income Veteran Chris Dennis Joins Liquidnet to Head US Fixed Income Sales as it Readies for Dark Pool Launch

Liquidnet, the global institutional trading network, today announced that Chris Dennis has joined the company as Head of US Fixed Income Sales. Chris will be responsible for sales and strategy as Liquidnet builds out its high yield and investment grade trading platform scheduled to launch this quarter. Based in New York, he reports directly to Liquidnet’s Head of Fixed Income Constantinos Antoniades.

Liquidnet to Launch Institutional Dark Pool for Corporate Bonds with Connectivity to Seven Major OMS Providers

Liquidnet, the global institutional trading network, today announced that it is integrating with seven Order Management Systems (OMS) to provide direct connectivity into the first dark pool for corporate bonds which is scheduled to launch in Q3. Through these integrations, Liquidnet is centralizing a critical mass of corporate bond liquidity to market participants so that they can take advantage of corporate bond trading opportunities that are currently not available in the marketplace.

Interactive Data to Provide Pricing Data to Liquidnet’s Fixed Income Dark Pool to Better Support Best Execution Objectives

Interactive Data, a trusted, leading provider of fixed-income evaluated pricing, announced that it will provide Liquidnet, the global institutional trading network, with continuous evaluated pricing to help its fixed income trading platform participants meet their price discovery and best execution objectives. Liquidnet will soon launch the first dark pool for corporate bonds which is centralizing a critical mass of corporate bond liquidity from its network of more than 780 asset managers and providing enhanced data and proven technology that will make corporate bond trading more efficient.

View Interactive Data's full Press Release here

The Institutionalization of the Pre-IPO Equity Market

A longer road to the public market requires a new source of pre-IPO capital. Institutional investor participation in the pre-IPO equity market can be broadened significantly but structural changes to the marketplace will be required. Read this paper to learn how Liquidnet's Capital Markets team is providing  a solution to help pre-IPO equity become a broadly held institutional asset class.

Liquidnet Expands Capital Markets Business Directly Connecting Institutional Investors and Corporate Issuers More Efficiently

Expansion of Team Brings International Capital Markets

Liquidnet, the global institutional trading network, continues to invest in its capital markets business with the goal of providing a more efficient capital raising process for public and private companies while delivering additional liquidity to its network of 740 which include the world’s leading asset managers.

VIDEO: Fixed Income - Solving the Liquidity Drought

Highlights from the June 2014 fixed income press panel.

Moderated by Adam Sussman, Liquidnet Head of Market Structure, with esteemed panelists including: Kevin McPartland, Principal, Market Structure & Technology, Greenwich Associates; Milton Ezrati, Senior Economist & Market Strategist, Lord Abbett; Edward B. Marrinan, Managing Director, Macro Credit Strategist, Co-Head Strategy, Americas, RBS Securities; and Constantinos Antoniades, Founder and CEO, Vega-Chi.

VIDEO: Liquidnet Expands Into Fixed Income Market

Video of Liquidnet CEO and Founder, Seth Merrin, and Vega-Chi CEO and Founder, Constantinos Antoniades on Liquidnet's expansion into the fixed income market. This partnership, subject to regulatory approval, will combine Liquidnet’s experience, scale and global reach within the institutional investment community with Vega-Chi’s proven corporate bond trading platform and sector expertise to accelerate efficiencies within the corporate bond market.

Liquidnet Expands Into Fixed Income Market with Acquisition of Bond Trading Platform Vega-Chi

Liquidnet, the global institutional trading network, announced today that it will enter the fixed income market with its acquisition of bond trading platform Vega-Chi. This partnership, subject to regulatory approval, will combine Liquidnet’s experience, scale and global reach within the institutional investment community with Vega-Chi’s proven corporate bond trading platform and sector expertise to accelerate efficiencies within the corporate bond market.