In Pursuit of Performance, Institutional Investors Continue To Trade In Size To Best Execute Investment Ideas
Liquidnet, the global institutional trading network, set a new trading record in Australia during May 2012, trading over AU $1 billion in member trades. Earlier this year, Liquidnet celebrated its four-year anniversary of trading in Australia, providing institutions with the ability to get into and out of positions quickly, safely and efficiently.
“Our recent success has coincided with the introduction of market competition in Australia which has highlighted the need to trade in size safely, without information leakage and without anyone taking advantage of our Member’s order size. Performance today is all about execution,” commented James Chatfield, Head of Liquidnet Australia.
Liquidnet also continues to be the preferred choice for investors executing large block trades in Australia. Liquidnet’s average trade size of AU $1,573,916 for May 2012 was 224 times the ASX average of AU $7007 over the same period. Today, Liquidnet Australia’s network includes 48 domestic asset management firms that are live and trading on the system.
U.S. Block Dominance Continues
In the U.S., Members continued to dominate the block volume for stocks they traded in Liquidnet, allowing them to quickly and efficiently enter or exit their positions. In May, 77% of the time Liquidnet Members traded a U.S. stock they executed either the 1st or 2nd largest print of the day in that stock. For small cap stocks, Members executed the 1st or 2nd largest prints of the day 88% of the time[iii]. In addition, during the month of May Liquidnet Members traded the largest trade of the entire month in 474 different U.S. stocks[v] illustrating our Members’ ability to trade in size that is not easily accessible in today’s market.
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 U.S. equity securities executed in our negotiation and Liquidnet H2O® ATSs and third party
[iii] Negotiation product.
[iv] Amounts adjusted to reflect foreign exchange rates for the same period from 2011.
[v] excluding Open/Closing Consolidated Prints
*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.