Liquidnet, a buy-side only crossing network, has added NYSE Arca, a subsidiary of US exchange group NYSE Euronext, to its list of streaming liquidity partners (SLPs) on its H2O service.
The deal will give Liquidnet’s 552 members protected access to NYSE Arca’s liquidity, while preserving the anonymity of their orders. Liquidnet H2O aggregates fragmented market liquidity and enables clients to interact with the liquidity of its SLPs, consisting of broker-dealers and other electronic trading systems.
According to the firms, sharing liquidity will result in price improvement for exchange participants and Liquidnet members, as they will both receive executions at the mid-point of the bid/ask spread. It will also give Liquidnet members direct access to exchange liquidity and allow exchange members to send IOIs (indications of interest) to Liquidnet.
“When we launched Liquidnet H2O three years ago we knew it was the most effective means for the buy-side to interact with external order flow with little-to-no market impact,” said Seth Merrin, Liquidnet CEO. “Today, it offers large, buy-side investors the ability to source block liquidity from a worldwide community of institutional investment firms, streaming liquidity from the world’s largest exchanges and leading broker-dealers, and strategic access to the open market.”