Liquidnet

Liquidnet
Industry Brokerage
Founded April 2001 (2001-04)
Founder Seth Merrin
Headquarters New York City, United States
Key people
  • Seth Merrin (Founder & CEO)
  • Mark Pumfrey (Head of EMEA)
  • Lee Porter (Head of APAC)
Website www.liquidnet.com

Liquidnet is a global institutional dark pool trading network that connects asset managers with liquidity. Liquidnet trades in 45 equity markets for asset management firms who collectively manage US$15 trillion.[1]

Liquidnet is headquartered in New York City and has offices in Boston, San Francisco, London, Hong Kong, Singapore, Sydney, Tokyo, and Toronto.[2]

History

Liquidnet was founded in April 2001 by Seth Merrin as a wholesale electronic marketplace where institutional investors could trade large blocks of stocks.[3]

Merrin estimated that the network needed at least 100 buy side firms live on Day One to create a critical mass. This number was revised to 75, but the company ultimately launched with only 38 institutions.[3]

Merrin describes his company as “creating marketplaces that enable institutions to trade in size with the efficiency that they sorely need.”[3] In the U.S., Liquidnet’s average execution size of 50,000 shares is 200 times the size of the 250-share average traded in all lit and dark venues. Liquidnet’s average execution in international equities is reportedly 100 times larger than the average.[3]

Liquidnet has an Equity Capital Markets and Issuer Services group which leverages its community of institutional investors to determine institutional demand for a stock.[4]

In January 2010, Liquidnet announced a strategic investment in OTR Global LLC, a securities research and brokerage firm.[5]

In October 2011 Liquidnet launched a private shares market.[6] As part of Liquidnet’s equity capital markets division, the Private Shares group works with institutional investors and companies looking to trade private shares.[7]

In July 2011 SIX Swiss Exchange and Liquidnet launched a platform for non-displayed equity block trading.[8] The platform allows SIX Swiss Exchange members and Liquidnet’s buy side members to execute large block trades.[9]

In 2017, Liquidnet acquired OTAS Technologies, a market-leading analytics platform that delivers actionable market intelligence and context directly to institutional traders and portfolio managers.

References

  1. ↑ Liquidnet Continues to Dominate Block Trading Globally During Third Quarter | Reuters
  2. ↑ Liquidnet opens fourth office in Singapore | TopNews Singapore Archived 2012-07-24 at Archive.is
  3. 1 2 3 4 Seth Merrin: Imagining Wholesale Change - Advanced Trading
  4. ↑ Liquidnet attracts corporate share buy backs - FT.com
  5. ↑ Liquidnet Announces Strategic Investment in OTR Global
  6. ↑ Dark pool launches private share market - FT.com
  7. ↑ Liquidnet Hires Lou Kerner, Enters Secondary Market for Private Shares - NYTimes.com
  8. ↑ SIX exchange, Liquidnet report progress - FT.com
  9. ↑ Liquidnet And SIX Swiss Exchange Launch Platform For Non-Displayed Block Trading - Wall Street & Technology
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