Liquidnet Continues to Dominate Block Trading Globally During Third Quarter

Fri Oct 14, 2011 4:00pm EDT

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Liquidnet Continues to Dominate Block Trading Globally During Third Quarter

Liquidnet, the global institutional trading network, continues to be the venue of choice by the asset management community to trade large blocks of stocks. On average for Q3 2011, when a stock was traded through Liquidnet, it represented 37% of the day’s market block volume in those names. For a small cap stock it was 55% and for a micro cap stock it was 60%, on average. In addition, Liquidnet was the 1st or 2nd largest print of the day 81% of the time for small cap stocks and 84% of the time for micro cap stocks.

Liquidnet also continues to be the block trading platform of choice globally. In Europe, Liquidnet’s executions are on average 57 times larger than the primary exchanges’ and our competitors’.

“Typically, when there is high volatility in the market, we expect to see block-size trades decrease. However, this has not occurred during the current cycle. Our community of institutional investors continue to find large block executions and are trading at a quickened pace, which is limiting opportunity trading costs on the aggregate,” said Brian Williamson, Senior US Equities Analyst at Liquidnet. “These investors know once Liquidnet is involved in a name, they can continue to find safe latent liquidity in massive block size even as spreads are blowing out in the current market.”

September Volume

     

Current Month1

     

Year-to-Date1

Sept ‘11

     

Sept ‘10

     

Change

Sept ‘11

     

Sept ‘10

     

Change

Total U.S. trading volume (shares
in thousands)2

849,663 950,244 -11% 10,416,133 9,587,766 9%
Total U.S. trading days 21 21 0 days 189 188 1 day

Average daily U.S. trading volume
(shares in thousands)

40,460 45,250 -11% 55,112 50,999 8%

Average daily U.S. natural liquidity
(shares in thousands)

1,543,622 1,644,081 -6% 1,840,496 1,756,027 5%

Average U.S. execution size in
shares3

41,899 49,799 -16% 49,839 47,047 6%

Total international principal
traded ($USD in thousands)

6,250,715 8,176,992 -24% 84,320,1367 68,118,826 24%

Total foreign exchange adjusted
international principal traded
($USD in thousands)4

6,117,967 8,176,992 -25% 79,689,946 68,118,826 17%

About Liquidnet

Liquidnet is the global institutional trading network that connects equity investors with the liquidity they need– in size, at any time, from anywhere. We go beyond what the retail market can provide by defending and securing the integrity and the anonymity of the block trade. We do this while continuously looking for ways to bring in new sources of safe, actionable liquidity from asset management firms, exchanges, brokers and corporations. Since we launched in 2001, our ability to anticipate and meet institutional demand has allowed us to extend trading to 39 equity markets across five continents for asset management firms who collectively manage US$12.5 trillion. For more information on the Liquidnet community, its liquidity, block executions, and additional investment capabilities, visit www.liquidnet.com.

© 2011 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Services Authority in the UK and 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. Liquidnet Canada Inc. is a member of IIROC and a member of 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 a licensed corporation under the Corporations Act of Australia, AFSL number 312525.

1Historical numbers may be subject to revision.

2Consists of shares of U.S. equity securities executed in our negotiation and Liquidnet H2O® ATSs and third party execution venues.

3Negotiation product.

4Amounts adjusted to reflect foreign exchange rates for the same period from 2010.

Liquidnet Corporate Communications
Melissa Kanter, 646-660-8469
mkanter@liquidnet.com

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