Demand for block share increases Liquidnet profits

Liquidnet has announced record third quarter profits in Europe, stemming from investor demand for improved size and execution as MiFID II approaches.

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Liquidnet has announced record third quarter profits in Europe, stemming from investor demand for improved size and execution as MiFID II approaches. 

In the third quarter, average execution size stood at $1.5 million while total principal trade increased to $34.7 billion. Representing an 18.9% year-over-year increase with increased growth of up to 41% coming from continental Europe. 

“More and more institutional investors are turning to each other to execute large trades with minimum market impact and maximum anonymity,” said Mark Pumfrey head of EMEA at Liquidnet Europe. 

“Following on from a record third quarter, we are seeing this momentum continuing into Q4 with four record breaking $1 billion plus trading days so far.” 

Liquidnet’s results were also attributed to their front-end trading application Liquidnet 5 which operates a pool of liquidity for institutional investors. Their algorithmic offerings have also increased with Liquidnet Dark recording an 86% increase in year-on-year trading.   

“As an independent, aligned interest model that only trades on behalf of its members, we believe Liquidnet is well placed in a post MiFID II world to help the buy-side deliver best execution.” Pumfrey added.

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