Buy-side block crossing network Liquidnet has announced record volumes in Asia for the first quarter of 2011, driven by increased membership and strong demand across the region, including recently added Indonesia and Malaysia.
Principal traded on Liquidnet by institutional investors in Asia Pacific rose 32% year-on-year with US$4.95 billion traded across eight markets in Q1 2011. This total breaks the previous quarterly record set in Q4 2010. Average execution size during the quarter was more than US$1.4 million, more than 100 times the average size of trades executed on the Hong Kong Stock Exchange based on January and February data. Liquidnet Asia also signed up its 200th member in Q1 2011. The average amount of liquidity available to members was US$9.2 billion per day. Average execution size in Malaysian stocks was US$1.0 million in Q1 2011, while Indonesia has recorded an average execution size of US$1.1 million since launch on 25 January 2011. Malaysian stocks have been available on Liquidnet since November 2010.
Liquidnet reported a 37% increase in trading volumes in the region during 2010, with over US$14 billion in principal traded in total.
Liquidnet launched its Asian operations in November 2007, offering trading in Hong Kong, Singaporean, Korean and Japanese stocks. Trading in Australian equities commenced on 20 February 2008 and New Zealand equities were made available in June 2010. The firm operates in 39 equities markets globally.
“We are seeing substantial growth in the liquidity in the pool, providing asset managers globally with the ability to trade in the size they need in a safe and protected environment while taking more advantage of these trading opportunities,” said Lee Porter, head of Asia Pacific, Liquidnet. “We have helped institutions reduce their market impact costs, which ultimately benefits all of the individual investors who put their money into mutual funds and pension funds.”