Liquidnet's Global Head of Market Structure Adam Sussman gives his throughts on the SEC's Transaction Fee Pilot. In his opinion, while this comes at the expense of testing additional hypotheses within all or some of the buckets, the simplicity of the proposal allows the SEC to focus on one thing: how much does transaction fees drive behavior.
Liquidnet announced the launch of Best Ex Replay, the newest addition to the Liquidnet Virtual High Touch suite powered by data and analytics from OTAS Technologies.
Best Ex Replay™ enables traders to recall precise market conditions to explain the context of execution decisions, investigate orders that experienced exceptional market conditions, and to help their firm meet regulatory reporting requirements such as MiFID II. It also enables traders to provide detailed execution feedback to Portfolio Managers.
Liquidnet published the results of a recent survey of global asset management firms that explores how MiFID II impacts the role of technology in trading corporate bonds. According to the study, titled ‘Future Tech— Trading Bonds Post MiFID II’, 86% of respondent firms had technology in place to comply with the MiFID II European regulation implementation date. This is still a work in progress, however, with 86% of firms currently in the process of re-configuring workflows and 68% improving data collection.
When wild market days occur, there are always questions about how the composition and trading characteristics of the market may affect how to source liquidity and protect alpha. The implications for trading echoes a common theme: Higher order decisions such as choosing the best algorithmic strategy will be more impactful than lower-level choices such as trading venue.
Read this edition of the Dark Pool Value Index on volatility here.
Rebecca Healey, Head of Market Structure & Strategy, EMEA, and Gareth Exton, Global Execution & Quantitative Services, compiled a report about the impacts of MiFID II on liquidity information.
Liquidnet’s Head of Market Structure & Strategy in EMEA, Rebecca Healey offers her insight on the upcoming ESMA implementation of Dark Volume Caps.
Liquidnet's Head of Market Structure for Asia-Pacific, Roland de Marsangy, gives his views on the effects of MiFID II in Asia-Pacific.
Adam Sussman, Liquidnet's Global Head of Market Structure, shares his views on how the SEC has prioritized reducing the frictional costs of going public in the inaugural Adam's Take for 2018.
Liquidnet’s Head of Market Structure & Strategy in EMEA, Rebecca Healey, focusing on how firms will respond to the new regulatory obligations, in particular on the need to evidence best execution in the fourth post of a 5-part research paper.
In the third post of a 5-part research paper, Rebecca Healey, Liquidnet’s Head of Market Structure & Strategy in EMEA, focuses on how trading will shift as the provision of research is unbundled from execution services.
Rebecca Healey, Liquidnet’s Head of Market Structure & Strategy in EMEA, gives her input into ESMA's decision to delay the closure of broker crossing networks (BCNs) under MiFID II.
Mark Pumfrey, Liquidnet’s Head of EMEA, wrote an op-ed for Investment Europe on navigating the liquidity landscape in a post MiFID II world.
Rebecca Healey, Liquidnet’s Head of Market Structure & Strategy in EMEA, investigates how the introduction of new European regulations will impact trading in corporate bond markets in the second post of a 5-part research paper.
Liquidnet’s Head of Market Structure & Strategy in EMEA, Rebecca Healey, shares her thoughts—and optimism—on MiFID II.
Liquidnet’s Head of Market Structure & Strategy in EMEA, Rebecca Healey, investigates how the introduction of new European regulations will impact trading in corporate bond markets in the inaugural post of a 5-part research paper.
Liquidnet, the global institutional trading network, today published Shape Shifting: Accessing the Dark Post MiFID II research on how buy-side traders plan to trade in the dark once broker dark pools are no longer admissible. Today, 65% of respondents see buy-side crossing networks as their most effective venue for accessing the dark versus 20% who still prefer broker dark pools.
Roland de Marsangy, Liquidnet’s Head of Market Structure for Asia-Pacific, gives his perspective on what MiFID II will mean for Asia-Pacific.
Liquidnet’s Head of Market Structure & Strategy in EMEA, Rebecca Healey, shares her three key takeaways from conversations at the recent International Trader Forum in Barcelona, Sep 6 – 8, 2017.
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.
Tony Cheung, Liquidnet APAC’s Head of Quantitative Analytics, takes a look at why the percentage of Average Daily Volume (ADV) can be a misleading indicator of trade difficulty in APAC.
Liquidnet's Head of Market Structure and Liquidity Partnerships Adam Sussman comments on fragmentation in child orders in the latest edition of Liquidnet's Block Dark Pool Value Index Liquidnet's Head of Market Structure and Liquidity Partnerships
Following recent trips to Hong Kong, Singapore, and the US, Rebecca Healey, Liquidnet’s Head of Market Structure & Strategy in EMEA, shares her insight about what she heard from asset managers across the globe and how MiFiD II impacts them.
After recent trips to Hong Kong, Singapore and the US, Rebecca Healey, Liquidnet's Head of Market Structure & Strategy in EMEA, comments on what she heard from asset managers across the globe and how MiFiD II impacts them.
Following recent trips to Hong Kong and Singapore, and the east and west coasts of the US, Liquidnet’s Head of Market Structure & Strategy in EMEA, Rebecca Healey, shares her insight about what she heard from asset managers across the globe and how MiFiD II impacts them.
Mark Pumfrey, Liquidnet’s Head of EMEA, wrote an op-ed for Investment Europe on best execution and bringing efficiency to the buy side.
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 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?
In an op-ed for TabbFORUM, Rebecca Healey, Liquidnet's Head of EMEA Market Structure and Strategy, offers guidance on the latest paper from ESMA on rules around trading on a trading venue (TOTV).
In an op-ed for TabbFORUM, Rob Laible, Liquidnet's Global Head of Equity Strategy, analyzes how technology can positively impact the buy-side trader.
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.
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.
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.
Fintech sounds like it’s about the future. Fintech sounds like that young, brash upstart that overthrows the status quo and changes the way we interact with some outdated service. Liquidnet's Adam Sussman writes about how he find that’s rarely the case, particularly when it comes to capital markets.
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.
As of October 2016, FINRA has published a monthly summary of block executions by ATS. Similar to our previous Dark Pool Value Indices, we have applied three factors to remove the noise from the data and rank the top block trading venues.
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.
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’s DPVI uses aggregate and symbol-level FINRA ATS data to rank each ATS based on three factors. The three factors are equally weighted to arrive at an overall DPVI ranking. ETFs are excluded from this analysis. Dealerweb is also excluded. The three factors are Market Share, Symbol Market Share and Symbol Trade Size.
Adam Sussman, Liquidnet's Head of Market Structure and Liquidity Partnerships, talks about what we can learn from FINRA's recent release of limited data on Over-the-Counter (OTC) trading venues. Read his full take here.
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.
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).
In an op-ed for The DESK, Constantinos Antoniades, Liquidnet's Head of Fixed Income, warns that recent market volatility and liquidity reduction are reminders of the corporate bond market's need for a more robust economy.
Liquidnet's Adam Sussman took a page out of Punxsutawney Phil's book to give his 2016 market expectations. Adam sat down with Wall Street Letter editor Anna Lyudvig and other industry leaders to discuss the digital divide, market volatility and more.
Adam Sussman, Head of Market Structure and Liquidity Partnerships, talks about the SEC's new Reg ATS proposal. Read his full take here.
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.
Adam Sussman, Head of Market Structure and Liquidity Partnerships, discusses the importance of reducing the complexity in our markets in order to restore investor confidence.
Adam Sussman, Head of Market Structure and Liquidity Partnerships, discusses how guaranteed advantages and explicit discrimination make markets more complex and obscure. Read his full take here.
Automated Trader spoke with Liquidnet's Head of Fixed Income, Constantinos Antoniades, about the upcoming launch of Liquidnet's institutional dark pool for corporate bonds. Read the full interview here.
Adam Sussman, Head of Market Structure and Liquidity Partnerships, discusses the importance of reducing the complexity in our markets in order to restore investor confidence. Click here to read his take.
Sourcing sufficient liquidity to get large trades done is the top concern of institutional traders globally, according to a survey conducted by Liquidnet, the global institutional trading network. Even as confidence in equity inflows returns, 84% of the survey’s respondents were either “concerned” or “very concerned” about being able to source liquidity in the current market. Liquidnet’s annual Institutional Voice survey canvassed the views of more than 115 buy-side equity traders around the globe.
More than 115 traders from Liquidnet’s global community shared their thoughts on some of the most important issues that they are facing every day. This year’s survey looks at key issues impacting execution, market structure, and global investing. View the results here.
Liquidnet’s most recent market microstructure research focused on the block market in Canada. Watch this video with Akis Georgiou, Head of Quantitative Analysis, to learn about the findings and read the summary paper here.
A recent study concluded that market impact is rife in the block-favoring Canadian market, and that where you execute large trades can have a significant impact on performance. Volatility was shown to be, on average, 150% higher for other brokers relative to Liquidnet in the one minute prior to a block execution. Clearly, minimizing this market impact consistently is a key factor in improving block trading performance over the long term. Read the summary paper here.
Adam Sussman, Head of Market Structure and Liquidity Partnerships, discusses the recent approval of Reg SCI, who it impacts, and what you need to know. Click here to read his take.
We're helping VCs change the paradigm to eliminate the value destruction inherent in today’s methods of monetization and distribution. Click here to learn about what we are doing.
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.
Adam Sussman, Head of Market Structure, discusses the 5 key issues we see for the buy side following SEC Chairman White’s recent speech.
Trading venues are increasingly publishing their Form ATS online -- but what does this really mean for the buy-side? Watch this video for Liquidnet's Head of Market Structure's take on this new trend.
The results of Liquidnet’s 2014 Institutional Voice survey are in. We heard from more than 100 traders from Liquidnet’s global community who shared their thoughts on some of the most important issues that they are facing every day.