Liquidnet, the global institutional trading network, announced strong performance for the first quarter of 2014, including record quarters of principal traded in both Europe and Asia.
“Institutional investors have long recognized the need for a venue where they can trade in size efficiently and directly with other like-minded investors while avoiding the predatory trading strategies that can negatively impact their orders and performance,” commented Seth Merrin, Liquidnet Founder and CEO. “Liquidnet was created to resolve these market inefficiencies years ago and the value we provide is evident by the strong performance we continue to see around the world.”
Globally, principal traded on Liquidnet’s network of 740+ institutions was up 15% in the first quarter totaling $136B (USD). Global negotiated average execution size was also up 18% to $1.6M year-over-year. True to Liquidnet’s buy-side roots, 84% of all negotiated trades executed in the first quarter were solely between buy-side institutions, also 92% of all negotiated trades were executed at the mid-point.
In Europe, Liquidnet saw its best quarter to date with average daily principal up 47% and principal traded coming in at a record $33.2B (USD) for Q1 2014. Average daily liquidity rose 19% coming in at a record $23.7B (USD) representing at 74% increase from the previous record in 2012. Average negotiated execution size for the region was $1.5M up 31% year over year.
In Asia-Pacific, Liquidnet also reported a record quarter with principal traded reaching an all-time high of $5.8B (USD), which includes a record quarter of $1.2B (USD) in Japan. Liquidnet’s Japan office also logged a record in principal liquidity with ¥16.8T (JPY) for the first quarter of 2014.
In the US, Liquidnet noted its highest average daily principal traded in two years, with an average of $1.6B (USD) per day for the first quarter of 2014. Average negotiated execution size also came in at a record $1.7M (USD), the highest Liquidnet US has reported in over 10 years. Total principal traded for US equities was up 8% to $95B with an impressive 1,400+ trades in the first quarter each over $5M (USD) in principal.
MAKING MARKETS MORE EFFICIENT, AGAIN
Last month, Liquidnet announced their entrance into the fixed income markets with the company’s acquisition of bond trading platform Vega-Chi. The partnership, which is subject to regulatory approval, will combine Liquidnet’s experience, scale and global reach within the institutional investment community with Vega-Chi’s proven corporate bond trading platform and sector expertise to accelerate efficiencies within the corporate bond market.
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 41,000 shares in the US, 55,000 in Canada, and approximately $1.3 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 and follow us on Twitter @Liquidnet.
© 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.