THE TRADE: Liquidnet and TP ICAP - The Growth Deal

Following the $700 million acquisition of institutional trading network and dark pool operator Liquidnet by TP ICAP, Hayley McDowell sits down with Liquidnet’s global head of Equities, Rob Laible, TP ICAP’s group head of Strategy, Joanna Nader, and CEO of Agency Execution, John Ruskin, to investigate the merger.

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THE DESK: Buy-side Fights Back Against Primary Market Pressure

Although DirectBooks is keeping its cards close to its chest, Liquidnet has revealed it will help by applying natural language processing (NLP) to communications between buy and sell-side firms through the application of machine learning tools, thereby taking the unstructured data and making it structured. Constantinos Antoniades, Head of Fixed Income at Liquidnet, explains.

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WATERS RANKINGS 2020: Best Agency Broker—Liquidnet

Liquidnet has won the best agency broker category in this year’s Waters Rankings. Decided exclusively by WatersTechnology’s readers, Liquidnet was recognized for its recent investments in its data and analytics portfolio, and several prominent leadership changes to drive its technology, analytics and equities strategies.

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WALL STREET JOURNAL: Liquidnet to Launch AI-Powered Data Service

Liquidnet is set to launch a new service to help money managers unearth hard-to-find information which could affect investment decisions. Investment Analytics will rely on AI to analyze financial reports and earnings calls. Vicky Sanders was appointed Global Head of IA at the end of January. Larry Tabb, founder of TABB Group, said combining the technologies in Liquidnet's recent acquisitions could make for a ‘powerful package'.

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FINANCIAL TIMES: No easy answers to stock markets' last-minute rush

The rise of passive investing and trading algorithms is amplifying the daily closing auction on stock exchanges, creating a shift in the rhythm of daily trading on stock markets in Europe. A Liquidnet report suggests the proportion of each day's dealings done in these closing auctions rose to a record 25% in Q4 2019, up from 17% in Q1. This reflects shifts in market structure such as the rise of passive equity investing through ETFs.

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SOUTH CHINA MORNING POST: Asian investors are coming back to the financial markets as geopolitical worries subside, volatility increases, says Liquidnet

Institutional investors in Asia have begun 2020 much more active in the financial markets than the second half of last year. Lee Porter, Head of APAC at Liquidnet, said investors are looking for trading opportunities as subsiding geopolitical worries have increased volatility. January was Liquidnet’s second-best month in Asia since operations began in 2007.

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FINANCIAL NEWS: Are we heading for recession in 2020? Here's what City CEOs think

In a series of articles looking at the challenges facing the financial services industry over the next decade, Financial News asked London senior decision-makers whether a global or UK recession is likely in 2020. Mark Pumfrey, Global Head of Equities and Head of Liquidnet EMEA, said it seems unlikely that there will be a let-up in economic nationalism. Tariffs and higher prices could therefore restrict economic growth.

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THE DESK: One desk for multi-asset low-touch trading

Traders are arguing that if a single desk can trade all liquid instruments for an asset manager, it could see significant cost and process efficiencies. A 2018 report found that buy-side firms with a centralized desk have a number of low-touch orders to which traders cannot add value. Constantinos Antoniades, Head of Fixed Income at Liquidnet, says currently only some asset managers split high-touch and low-touch flows.

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WATERSTECHNOLOGY: APIs to Help with Regulatory Differences Over Dark Trading

Due to differing approaches to dark trading regulations from the FCA and ESMA, market participants are going to have to make important decisions as to where they want to trade, what jurisdiction they want to trade in, and how they are going to access future liquidity. Rebecca Healey, Global Head of Market Structure at Liquidnet, says in a so-called "hard Brexit" scenario, liquidity would fragment further.

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RACONTEUR: Could automated trading mean the end of volatility?

With increased responsibility being given to computers for defining investment strategies, automated trading could change the dynamics of the stock market. Widespread adoption is more commonplace due to alpha generation, and increased efficiency. Chris Jackson, Global Head of Equities Strategy at Liquidnet, says the explosion of data has made the investment process substantially more complex.

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THE BUSINESS TIMES: Liquidnet sees record year trading in Singapore

Liquidnet, the largest dark-pool operator in APAC, enjoyed a record year trading in Singpore. YTD, Liquidnet has generated in excess of US$1.5B in total value of equities bought and sold, or principal traded. Lee Porter, Head of Liquidnet Asia Pacific, says that these numbers should be looked at in perspective, as Singapore has much lower market turnover than Hong Kong and Australia.  

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BLOOMBERG: Fed, Consumers Turn a Deaf Ear to Wall Street's Recession Siren

Fed Chairman Jerome Powell's qualm with Wall Street over recession risks is backed by data showing that much of the talk is concentrated in a few industries, including banking. A Prattle analysis shows that Financial Services companies are talking about recession more than any other sector. Prattle's analysis shows that consumer-oriented sectors such as healthcare are barely mentioning recession or similar terms.

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