Liquidnet adds algo ranking to MiFID II service in Europe

Algo ranking model supports best execution requirements under MiFID II.

Liquidnet has extended its algo ranking model in Europe as part of the Virtual High Touch MiFID II service.

The algo ranking technology - which is already available in the US  - profiles orders to rank execution strategies in real-time based on order characteristics, trading objectives, market conditions and performance targets.

It then ranks Liquidnet’s Next Gen Algos according to performance, fill rate and a combination of both before it is presented to the user for selection.

Chris Jackson, Liquidnet’s EMEA head of execution & quantitative services group, explained the way to truly capture a performance advantage “is by choosing the right strategy based on the conditions of the stock and market at the time of execution”.

The tool was developed to support best execution requirements under MiFID II and is the latest addition to Liquidnet’s Virtual High Touch service in Europe.

“MiFID II is just the beginning. We are focused on innovation and providing our members with the liquidity, tools, intelligence, and market insight they need as their roles continue to evolve,” added Mark Pumfrey, head of Liquidnet EMEA.

Last month, Liquidnet confirmed its acquisition of artificial intelligence powered buy-side decision support and analytics provider, OTAS Technologies.

OTAS’ analytics tool will be integrated with Liquidnet’s Virtual High Touch trading platform to improve decision making for the buy-side.