News & Views

Liquidnet Continues to See Strong Global Performance

Liquidnet Australia Celebrates Four Year Anniversary  with New Trading Record

New York
Liquidnet, the global institutional trading network, continued to see increased institutional trading activity and improved performance globally.
A relatively more stable environment in Europe led to strong month-over-month performance in the EMEA region. This included a 17% increase in total principal traded as well as a 22% increase in average daily traded principal.  Average daily liquidity was up 18% totaling $15.8 over January. In addition, Liquidnet’s average
negotiated execution size in EMEA was $1.22 mln USD in February, an 11% increase month-over-month.

John Barker, Managing Director of Liquidnet Europe, said, “We are beginning to see what looks like some signs of recovery in both trading and liquidity levels while deal sizes are also edging ahead. Markets have been slightly more confident recently and it’s possible that this has worked through to trading levels. So whilst we are encouraged by the figures we are seeing, we remain focused as ever on connecting our Members with the unique liquidity they need and continuing to build the world’s deepest, high-quality pool of liquidity.”

Liquidnet Australia Sets New Record

In Australia, Liquidnet marked its 4 year anniversary with a new trading record set during February 2012, trading close to A$1 billion in Australian equities. Australian liquidity in Liquidnet was at record levels last month, averaging A$2.2 billion per day, representing the activity of 108 unique buy side institutions looking to move
large blocks of Australian listed securities. This includes 48 Australian-based asset management firms who are live and trading on the system.

The pool also displayed quality breadth, providing matches in 191 distinct Australian stocks during the month. The average trade size in February was A$1.5 million. This is in contrast to the average trade size on the Australian Securities Exchange of A$7,581 over the same period. 

“For the last four years, we have been providing leading asset management firms in Australia and around the world with a way to trade their large blocks on a different scale by safely sourcing wholesale volumes of liquidity. As our network of institutions who trade Australian equities continues to grow and the liquidity they contribute increases, we continue to see our pool and match probabilities grow exponentially year after year,” commented Sam Macqueen, Head of Liquidnet Australia.

Additional Trading Highlights

Institutional investors on the Liquidnet network continue to trade blocks and see depth of liquidity on a different scale.  In February, Liquidnet Members traded the largest trade of the month in 476 different U.S. stocks and in 237 of these stocks they traded the largest print of the year.  In addition, Liquidnet’s negotiated average trade size in February – 47,000 shares - was up 8% month-over-month and was the highest it has been in six months.

When Members trade a stock in Liquidnet they continue to dominate the block volume in that name allowing them to quickly and efficiently enter or exit their positions.  On average in February, when Liquidnet Members traded a U.S. stock they represented 39% of the day’s market block volume in that stock. In addition, 63% of the time Liquidnet Members traded a U.S. stock in February 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 80% of the time.[iii]

February Volume Chart

About Liquidnet

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.

Contact

Melissa Kanter, Liquidnet
Global Marketing & Communications
+1 646 660 8469
mkanter@liquidnet.com

[ 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 execution venues.
[iii] Negotiation product.
[iv] Amounts adjusted to reflect foreign exchange rates for the same period from 2011.
*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.

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