Liquidnet Announces Record Q1 in Asia
Liquidnet, the global institutional marketplace that enables safe and anonymous block trading of equities, has emerged as a top trading venue in Asia-Pacific for the institutional investor community. In only three years, Liquidnet Asia’s volumes have soared, hitting a new record in the first quarter of 2011, breaking the previous record from last quarter. Record volumes were driven by a rapidly growing Member base in the region, marked by the signing of Liquidnet Asia’s 200th Member firm. Strong volumes were also fueled by a surge in trading activity and large demand in Indonesia.
“Liquidnet is unique in that we aggregate supply and demand for AsiaPac equities from our Members here in the region and around the globe into our institutional marketplace. We are seeing substantial growth in the liquidity in the pool providing asset managers globally with the ability to trade in the size they need in a safe and protected environment while taking more advantage of these trading opportunities,” says Lee Porter, Head of Asia Pacific for Liquidnet.
Liquidnet’s achievements in Asia have also been recognized with two key industry awards. The Asset’s Asian Awards named Liquidnet as “Best Crossing Network 2011” for the third consecutive year and The Asian Banker awarded Liquidnet “Dark Pool of the Year” in 2011 for the second time.
“Liquidnet provides a solution to the greatest problem facing institutional traders in Asia – sourcing large blocks of shares in a safe and efficient venue. In addressing the issue, we have helped institutions reduce their market impact costs, which ultimately benefits all of the individual investors who put their money into mutual funds and pension plans,” Porter adds.
Performance data from Liquidnet show the popularity of its trading platform among the institutional investor community in the region:
• During the first quarter, principal traded for Liquidnet Asia set a record, rising 32 percent year-on-year to US$4.95 billion;
• The average size of a trade in Asia Pacific on Liquidnet’s platform was more than US$1.4 million during the quarter, which is around 118 times the average size of trades on the Hong Kong Stock Exchange (based on Jan and Feb data);
• Liquidnet’s average pool size in Asia for the first quarter of 2011, which is the amount of liquidity available to Members, was US$9.2 billion per day in equities;
• In emerging markets of South East Asia, recent additions to Liquidnet’s global offering, volumes were also strong. Since launch, Indonesia recorded an average execution size of US$1.1 million while Malaysia’s average execution size was US$1.0 million in the first quarter.
Liquidnet launched its Asian operations on 29 November 2007 in Hong Kong, Singapore, Korea and Japan. Trading in Australia commenced in 2008 followed by New Zealand and Malaysia in 2010 with Indonesia added in January 2011.