Liquidnet, the global institutional trading network, today announced record second quarter performance in Asia Pacific as the company benefited from strong demand across the region for safe access to block trading among large institutions.
Principal traded climbed to a record US$6 billion, marking a 4% increase on the previous quarter which was also a record. The region also reported record average daily liquidity of US$11.6 billion, a 9% jump rom Q1 2014. The average trade size across the region during the quarter was around US$1.2 million, an increase of 7% over the first quarter.
Lee Porter, Head of Liquidnet Asia, says, “The rally in some Asian equity markets, combined with thinner volumes in public markets, drove more institutional investors to Liquidnet as they sought to secure large blocks on a safe and secure venue. This was reflected in our record performance, and the size of the liquidity pool, which ultimately offers investors more opportunity to find the liquidity they demand.”
A surge in the trading of Japanese equities contributed to record performance for the region and Japan, with a 144% jump in principal traded in Q2 2014 over the same period last year. Volumes climbed on Liquidnet’s platforms, even as trading in Japan’s public markets fell. On the Tokyo Stock Exchange, volumes for the period of January to May 2014 were down 20%, over the same period a year earlier. For Liquidnet Japan, volumes from January to June 2014 were up 149% over the corresponding period in 2013.
Liquidnet Increases Equity Trading Access to India
Liquidnet also announced that it has commenced the routing of orders of Indian equities, on behalf of global members. Orders can be executed either on the NSE (The National Stock Exchange of India Ltd. or BSE (Bombay Stock Exchange) through a locally licensed broker.
Seth Merrin, CEO and founder of Liquidnet, says “Liquidnet members, no matter where they are located, can today trade large blocks in 43 markets globally in a safe environment where they can control their trading experience. Our value proposition has never been stronger and our 740+ members, which include the world’s largest asset managers, can now access investment opportunities in markets that up until now have been too illiquid to invest in.”
The announcements came as Liquidnet was awarded ‘Best Crossing Network’ for 2014 at The Asset’s Triple A Asset Servicing, Fund Management and Investor Awards.
Liquidnet is the global institutional trading network that connects over 700 of the world’s top asset managers to large-scale trading opportunities across the globe — 42 markets across five continents. With an average trade size of more than 41,000 shares in the US, 57,000 in Canada, and $1.5 million in Europe, Africa and $1.1 million in 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 and follow us on Twitter @Liquidnet.
*as of Q1 2014
© 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.