[ A L G O R I T H M I C
T R A D I N G
S U R V E Y ]
Liquidnet
L
from hedge funds in nine of the 14 categories reviewed
iquidnet saw a slight increase in the percentage of
in this year’s survey. The firm recorded significant
hedge fund responses it received in this year’s sur-
year-on-year decreases in the ease of use (down 0.87)
vey. Respondents were primarily from small-to-me-
and customer support (down 0.9) categories, while
dium sized AuM brackets, with only one respondent
its lowest ranking came in the speed category with
managing more than $50 billion of assets. All but two
a score of 4.9, representing a year-on-year score de-
of Liquidnet’s hedge fund respondents indicated that
crease of 1.09. Liquidnet’s most improved areas of per-
they have increased usage of the firm’s algos over the
formance were in the execution consulting (5.68) and
past year, with no firm noting a decrease in usage.
dark pool access (6.24) categories, which increased by
Around one-quarter of respondents said they are
0.78 and 0.62 year-on-year respectively. It also scored
reviewing using algos from other providers, with sys-
well in the anonymity category (6.04). Despite being
tematic internaliser routing selection and optimised
unable to replicate the scores achieved in last year’s
LIS interaction cited as desired functionalities. For
Liquidnet
survey, Liquidnet did outperform the survey average
execution management,
Liquidnet’s respondents cited
this year in the reducing market impact, anonymity,
systems from Bloomberg, ITG, Fidessa, Improve
Eze, Portware
Reduce
Execution
ease of use, crossing,
execution consulting
and Linedata, among others.
Year
trader
Cost and dark Speed
consistency
pool impact
access categories.
Liquidnet recorded decreased year-on-year scores market
2018
2017
RATINGS FOR ALGORITHM PERFORMANCE
productivity
5.37
5.84
5.92
5.36
6.12
4.49
5.55
4.71
5.37
Improve trader productivity
5.36
4.49
Cost
2017
6.12
5.55
4.71
4.90
Speed
2018
5.92
5.84
Reduce market impact
Execution consistency
4.90
5.99
6.04
Anonymity
5.05
Price improvement
6.37
5.36
5.01
5.09
Customisation
5.59
Ease of use
Crossing 5.42
Customer support 5.43
Execution consulting
5.72
6.34
5.68
4.90
Dark pool access
5.62
Smart order routing capabilities
4.97
0.00
1.0 0
2.00
3.00
4.0 0
5.00
6.46
6.24
5.30
6.0 0
7.00
Issue 56 // TheTradeNews.com // 91
5.99
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