Liquidnet, an equity block trading venue, has executed its single largest European trade since the company began operations in the region in 2002.
Two Liquidnet members traded shares of French energy company Schneider with principal totalling €133.2 million on 24 November 2010. The previous record for a single European equity trade on Liquidnet was an execution of €99.7 million of Unilever shares set on 10 December 2007. The average trade size for European equities on Liquidnet in 2010 is €1.049 million.
Average trade sizes have fallen in Europe, as liquidity has fragmented across multiple venues under MiFID. The average order size for FTSE 100 stocks executed on the London Stock Exchange fell from €11,179 between May and June, to €10,340 in October, according to agency broker CA Cheuvreux. Trades in the French CAC 40 index executed on NYSE Euronext have also fallen from an average of €10,488 to €9,776 during the same period.
“This is a striking validation of Liquidnet's unique value in the institutional equities marketplace,” said John Barker, head of international for Liquidnet. “Liquidnet is the safe haven for institutions that want to trade size and prevent information leakage and market impact. It is becoming increasingly difficult for money managers to protect their large orders against predatory trading and Liquidnet enhances the quality and price of large trades.”