Liquidnet, the global institutional trading network, announced strong performance globally for 2013. Liquidnet, whose 740 members include the world’s largest asset managers, has seen institutional investor flows return to markets, such as Europe and Asia, amid improved global economic conditions.
“Building out Liquidnet’s global footprint to 42 markets has played a significant role in our success. While the bulk of investable assets are still held in North America, 2013 has marked a year in which these institutions have increasingly looked to diversify their international investment strategies,” commented Seth Merrin, Founder and CEO of Liquidnet. “With approximately 45,000 publically traded companies globally, institutional investors realize they have to look outside their borders to find the best opportunities. In 2013, this has meant diversifying into European equities and exploring new opportunities in Asia Pac.”
Globally, global principal traded on Liquidnet’s network was up 17% year-over-year totaling US$470 billion. In addition, Liquidnet’s global average negotiated execution size jumped 15% to US$1.4 million, which is more than 100 times greater than the major exchanges.
In Europe, Liquidnet saw a 59% increase in average daily principal traded and a 44% increase in average daily liquidity year-over-year. Liquidnet’s average execution size in Europe continues to increase, nearing USD $1.3 million, up 28% from 2012. Liquidnet maintained a 68% market share in dark block trading (over $1mm trades executed on MTFs), as institutions became increasingly more confident in trading European equities in large block size.
Liquidnet continued to increase its European footprint and saw a 146% increase in trading from Continental European institutions in 2013 from the previous year. The strong results seen in Europe were also driven by large investor flows from US institutions, which were up 48% in Q4 2013 compared to Q4 2012. Liquidnet also saw a significant increase in institutions trading large cap stocks, up 109% in Q4 2013 compared to Q4 2012.
Additional growth in the region was driven by the expansion of Liquidnet’s commission management services to Members and customers in Europe. The service is designed to reduce the conflicts that stem from managing best execution and the need to use commissions to pay research and execution bills.
Liquidnet is the global institutional trading network that connects equity investors with the liquidity they need. We go beyond what the retail market can provide by defending and securing the integrity and the anonymity of the block trade. We do this while continuously looking for ways to bring in new sources of safe, actionable liquidity from asset management firms, exchanges, brokers and corporations. Since we launched in 2001, our ability to anticipate and meet institutional demand has allowed us to extend trading to 42 equity markets across five continents for asset management firms who collectively manage US$13 trillion. For more information on the Liquidnet community, its liquidity, block executions, and additional investment capabilities, visit www.liquidnet.com.
1 LiquidMetrix Guide to Dark Pools, September 2013
© 2014 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Conduct Authority in the UK, is licensed by the Financial Services Board in South Africa, and is a member of the London Stock Exchange and a remote member of the Warsaw Stock Exchange, and SIX Swiss Exchange and a member and block agent of Xetra MidPoint order book. Liquidnet Canada Inc. is a member of IIROC and a member of the Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and a provider of automated trading services pursuant to the Securities and Futures Ordinance and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the Australian Securities and Investment Commission as an Australian Financial Services Licensee, AFSL number 312525, and is registered with the New Zealand Financial Markets Authority as a Financial Service Provider, FSP number FSP3781.