Liquidnet Australia Sets New Trading Record in February
Liquidnet, the global institutional trading network set a trading record in Australia during February 2012, trading close to A$1 billion in member trades. This record comes as Liquidnet celebrates its four-year anniversary of trading in Australia.
“For the last four years, we have been providing leading asset management firms around the world and in Australia 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.
In February, Liquidnet had one of its largest ever liquidity pools, averaging A$2.2 billion per day, representing the positions of 108 unique liquidity providers looking to move large blocks of Australian listed securities. The pool also demonstrated trading breadth, with 191 matched stock names. The average trade size during the month 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. Liquidnet Australia’s network includes 48 domestic asset management firms that are live and trading on the system.
“The large fund managers and superannuation funds that make up our network are longer-term focused and highly protective of their alpha generation capabilities across the entire investment process. As we continue to see an increase in high frequency trading, these investors see value in being able to transact large volumes of liquidity among each-other in a protected environment that guards them safely from information leakage and market impact, both of which can significantly erode returns for their clients,” continued Macqueen.
“With the entry of Chi-x and fragmentation of broking options, the institutional community needs to continue to innovate and embrace technology, and consider the best venues to trade where their interest and those of their clients are best protected.”