Liquidnet, a buy-side only crossing network and agency brokerage, has extended its stock universe to include securities listed on the New Zealand Exchange (NZX).
Trading in New Zealand stocks will be offered on Liquidnet’s crossing network from 22 June.
“Our members face significant market impact costs when trading NZX-listed stocks because wholesale-sized trades in a small market can cause dramatic price changes,” said Sam Macqueen, co-head, Liquidnet Australia. “Fund managers wanting to invest in NZX-listed stocks are effectively penalised for their size.”
“We believe Liquidnet will increase trading in securities listed on the New Zealand Exchange, helping it to retain and grow overall market liquidity,” added Steve Zilioli, co-head, Liquidnet Australia.
Liquidnet already offers trading in stocks listed in Australia, Hong Kong, Japan, South Korea and Singapore. According to Liquidnet, it traded US$3.75 billion across five Asia-Pacific markets in the first quarter of this year. Having launched in Australia in February 2008, Liquidnet now claims to have a daily liquidity pool of A$1.7 billion and an average trade size of A$1.2 million.
Liquidnet offers trading in 36 countries following the recent addition of Mexican and a number of eastern European markets.