Global Expansion Drives Performance
Liquidnet, the global institutional trading network, today announced 2011 performance highlights, monthly and year-to-date trading statistics for US and international equities.
“Liquidnet has established the global network for institutional investors to allow them to access liquidity and execute trades on a completely different scale. In a year of high volatility and increased uncertainty around the future of global markets, Liquidnet created unique investing opportunities and brought on new sources of liquidity. This includes our partnership with the SIX Swiss Stock Exchange and the addition of over 600 corporations to the network who now have the ability to execute buy backs and other at the market transactions through our platform,” said Seth Merrin, Founder and CEO of Liquidnet. “In 2012, Liquidnet is focused on continuing to provide the deepest and most unique pool of liquidity, opening up new investment opportunities around the world and creating an unmatched user experience for institutional investors globally.”
2011 Trading Highlights
In 2011, Liquidnet maintained its block trading dominance in markets around the world. The company continues to lead the industry with an overall average execution size of 48,422 shares in the US, a 3% increase from 2010. Other block highlights include:
- 62% of the time when Liquidnet traded a stock in 2011 it was either the 1st or 2nd largest print of the day in that stock. For small cap stocks this percentage rose to over 80%.
- On average in 2011, when Liquidnet traded a stock, it represented 39% of the day‟s market block volume in that stock. For small cap stocks that percentage rose to 57%.
- In 2011, Liquidnet also saw a 31% year-over-year increase in volume executed through our trading desk.
Following an aggressive global expansion including the addition of Indonesian equities in 2011, Liquidnet continues to see record performance in markets outside of the US. Liquidnet has connected the world's leading asset management firms with the liquidity they need to execute large trades and realize investment opportunities around the world. Highlights include:
- Liquidnet Asia-Pacific has connected 200 of the leading asset management firms in the region to Liquidnet's network. The average execution size in 2011 was US$1.2 million, up approximately 11% from 2010. That is over 116 times the average execution size on the Hong Kong Stock Exchange over the same period. In addition, Liquidnet executed its largest trade ever in the Asia Pac region in Q4 totaling US$59 million in principal traded. Other 2011 milestones include: Average daily liquidity increased over 19% year-over-year to more than US$8.4 billion; average daily principal traded also increased over 23% year-over-year to more than US $68 million; and year-to-date principal traded in Southeast Asia, including Indonesia, Malaysia, and Singapore, was US$1.6 billion, up 137% from 2010.
- Liquidnet Canada has more than 29 Canadian-based asset management firms and over100 global asset managers now trading Canadian equities through Liquidnet. Liquidnet Canada’s average execution size is more than 150 times greater than on the TSX and 190 times larger on average than other off-exchange trading venues in Canada. In 2011, Liquidnet volumes grew 60% year-over-year and average daily liquidity increased over 49% to 404mm shares/per day year-over-year.
- Liquidnet Europe also continued to maintain block dominance in 2011 with an average execution size of $879,845 - the largest of any other trading venue in the region. In an ongoing effort to bring additional liquidity to institutional investors, Liquidnet and the SIX Swiss Exchange launched the ground breaking trading platform for non-displayed equity block trading. The unique platform allows SIX Swiss Exchange members and buy side market participants to execute large block trades efficiently in Swiss and global equities through Liquidnet‟s exclusive global liquidity pool.
John Barker, Managing Director of Liquidnet Europe, said, “We have continued to build a unique global liquidity pool for investors, creating opportunities to trade in sizes that are unrivaled around the world. Our platform with the SIX Swiss Exchange is an opportunity to access the wholesale market and execute large block trades with the global institutional trading community through a safe and secure trading environment.”
Equity Capital Markets/Private Shares Trading
Liquidnet‟s Equity Capital Markets (ECM) business also saw strong momentum this year with Liquidnet participating in a number of capital market transactions including share repurchases, IPOs, and other share offerings. The team executed more than $1billion in transactions in 2011. The company also launched its private shares group, creating investment opportunities for institutional investors and some of the most exciting private companies in the social media space.
Awards and Accolades
Liquidnet received numerous awards from across the globe in 2011, validating its exceptional standard of service and unmatched value of its offerings. Awards include:
- “#1 in Operational Performance” in the US and in Europe; first place rankings in all three major US categories, 2011 McLagan/Z/Yen Survey of Operational Performance of Brokers
- “Best Crossing Network,” Waters Ranking 2011
- “#1 Broker in the United States,” Elkins/McSherry on behalf of Pensions & Investments
- “Dark Pool of the Year,” The Asset‟s Asian Awards (second year)
Liquidnet is the global institutional trading network that connects over 700 of the world’s top asset managers to large-scale equity trading opportunities across the globe — 41 markets across five continents. With an average trade size of more than 44,000 shares in the US, 68,800 in Canada, and approximately $1 million in Europe, Africa and Asia Pacific*, Liquidnet is a leader in large block trading globally. Liquidnet does this by going beyond what the retail market can provide by defending and securing the integrity and the anonymity of the block trade while continuously looking for ways to bring in new sources of safe, actionable liquidity from asset management firms, exchanges, brokers and corporations. Asset Managers rely on Liquidnet to help them protect the performance of their portfolios by allowing them to enter and exit their portfolio positions more efficiently. For more information on the Liquidnet community, its liquidity, block executions, and additional investment capabilities, visit www.liquidnet.com.
Melissa Kanter, Liquidnet
Global Marketing & Communications
+1 646 660 8469
[ i] Historical numbers may be subject to revision.
[ii] Consists of shares of US equity securities executed in our negotiation and Liquidnet H2O® ATSs and third
party execution venues.
[iii] Negotiation product.
[iv] Amounts adjusted to reflect foreign exchange rates for the same period from 2010.
*as of 1H 2012
©2012 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Services 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. Liquidnet Canada Inc. is a member of IIROC and a member of 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.