Liquidnet has topped transaction cost analysis service provider Abel/Noser's US and global rankings as best broker based on execution prices in 2012.
Abel/Noser evaluated brokers based on placement strike results and compared this against a benchmark based on their trade-level.
For the second year running, Liquidnet topped both the US and global rankings, achieving an average day placement strike of -9.87 basis points in the US and -9.77 bps globally. In both cases, this was several basis points above the benchmarks of -14.5 bps and -13.89 bps respectively.
Ted Morgan, chief operating officer at Abel/Noser, said: "Liquidnet's business model, which is quite different to the more traditional brokerage firms, has helped it rise to the top of the table. In many ways it has the original dark pool and if it is able to detect a crossing opportunity then it can make large block trades happen."
He added that Liquidnet may benefit from an element of selection bias, as it is able to pick the best trades and leave the more difficult trades to others.
In the US, Morgan Stanley was second ranked, achieving an average day placement strike of -12.52 bps in the US and -12.4 bps worldwide.
Morgan Stanley also rose above Credit Suisse in terms of its market share. It traded US$131.3 billion in the US in 2012, while Credit Suisse, which has traditionally seen the largest volume, traded only US$109.2 billion.
Morgan Stanley has made a number of upgrades to its technology and algorithmic offering and stated in January that it plans to spend US$500 million on technology by the middle of 2014. The firm's technology drive appears to be helping it grow its trading volume and achieve better execution prices.
In Europe, Credit Agricole topped the table, achieving an average strike rate of -5.63 bps, while Macquarie Securities topped the Asian league with an average strike rate of -15.04 bps.