Liquidnet growth driven by European expansion

Buy-side trading platform Liquidnet saw global principal traded grow by more than 15% year-on-year in 2013 including strong growth in its European business, which increased by 59% from 2012.

Buy-side trading platform Liquidnet saw global principal traded grow by more than 15% year-on-year in 2013 including strong growth in its European business, which increased by 59% from 2012.

The institutional liquidity network said building its international footprint outside of North America was key to its growth strategy and Liquidnet is now present in 42 markets globally.

Global principal traded hit US$470 billion, a 17% increase, while global average execution size increased by 15% to US$1.4 million.

However, the European business was the strongest market or Liquidnet, with a 59% rise in average daily principal traded and a 44% increase in average daily liquidity year-on-year. European average execution size also increased, approaching the levels seen in North America at US$1.3 million, a 28% increase from 2012.

Growth of Liquidnet’s continental European client base was particularly strong, with a 146% increase in trading from European institutions based outside the UK. There was also significant investor flows into Europe from the US, up 48% in Q4 2013 compared to the same period in 2012.

Liquidnet said it expansion of commission management services to new European markets played a key role in its growth in the region.

"Building out Liquidnet's global footprint to 42 markets has played a significant role in our success. While the bulk of investable assets are still held in North America, 2013 has marked a year in which these institutions have increasingly looked to diversify their international investment strategies," said Seth Merrin, founder and CEO of Liquidnet.

In the US, the platform continued to be a major block trading player, with members trading US stocks usually sitting as the first or second largest print of the day. Liquidnet also crossed its largest ever trade in 2013, trading 2.9 million shares in a US-listed stock worth a total of US$150 million.

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