Buy-side block trading network Liquidnet has continued to show growth in trade volumes, particularly in Asia, which its CEO has linked to a resurgence in the popularity of cash equities over fixed income products.
In the first half of 2013, Liquidnet’s APAC region registered 27% year-on-year growth of average daily liquidity, to US$10.5 billion, from US$8.3 billion in 2012. This year, the block trading platform extended operations into Thailand, its tenth Asia-Pacific market.
Liquidnet’s EMEA volumes have also continued to grow throughout the first six moths of the year, with average principal traded rising 57% to US$359 million compared to H1 2012.
Recent data from research brokerage Rosenblatt Securities, which compiles data on dark pools, showed Liquidnet’s average execution size in Europe continued to lead its rivals, reaching €962,474 for May.
Liquidnet’s average daily trade volume for May reached €121.1 million, compared to the region’s most active dark pool, Credit Suisse’s Crossfinder, which registered €565.3 million, although it had a much smaller average execution size, at €5,485, according to the Rosenblatt Securities data.
Liquidnet’s fist half global figures for average daily liquidity also grew 24% to US$81.6 billion in principal from US$65.6 billion in H1 2012.
“As the money being pulled from bond funds starts to flow back into equities, asset managers will continue to rely on Liquidnet to execute in much larger size without moving the market. It simply means better performance for their funds,” said Seth Merrin, founder and CEO of Liquidnet.
Earlier this month, trading tools provider Abel/Noser Solutions ranked Liquidnet the top brokerage firm for its global and North America categories.
“The consistency of this ranking as best broker is a significant reason why Liquidnet remains a top destination for institutions looking to maximise performance,” Merrin said.