[ 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
Respondents were primarily from the mid to large-
iquidnet saw a marked increase in the percentage
sized brackets, with an equal split between the $1-10
of responses it drew in this year’s long-only algo
billion, $10-50 billion and more than $50 billion in
survey more than doubling its percentage of responses
AuM ranges. Most respondents were active only in
from the previous year by recording 4.26% of the total.
the equities space, with around one-third also trading
The firm received generally favourable scores from
foreign exchange products. Two-thirds of respondents
respondents, and although there were several year-
recorded increased usage of Liquidnet algos compared
on-year decreases, still maintained a strong position in
to the previous year and almost three-quarters use
this year’s survey, scoring higher than average in most
Liquidnet algos exclusively.
of the 14 categories reviewed.
Almost half of long-only firms said they are consid-
Anonymity, dark pool access, reducing market im-
ering using algos from other providers, with a range of
pact and ease of use all attracted scores higher than 6,
additional functionalities mentioned, including access
although there were decreases for Liquidnet’s speed,
to systematic internalisers, optimised large-in-scale
customer support Liquidnet
and, most noticeably, crossing capa-
interaction, and finding liquidity outside the spreads.
bilities. Crossing was a particular area of strength for
Improve
Reduce
Just under half Ex
of ecution
Liquidnet’s long-only respondents
Liquidnet in last year’s survey; however, this decline
Cost providers Speed
trader
use impact
Bloomberg
ESMX
with other EMS
is in line with the wider Year
survey results for
long-only market
consistency
including ITG, Charles River and Eze.
firms this year.
productivity
2018
LIQUIDNET RATINGS FOR ALGORITHM
2017 PERFORMANCE
5.68
5.77
6.11
6.34
5.57
5.62
4.92
4.88
Improve trader
productivity
5.36
2018
2017
5.85
5.68
5.77
6.11
Reduce market impact
6.34
5.57
5.62
Execution consistency
Cost
4.92
4.88
5.36
Speed
5.85
6.27
6.27
Anonymity
5.52
5.51
Price improvement
4.92
5.11
Customisation
6.05
Ease of use
5.44
Crossing
6.12
5.84
Customer support
Execution consulting
6.45
6.32
5.66
5.02
Dark pool access
5.74
6.13
5.40
5.28
Smart order routing
capabilities
0.00
1.0 0
2.00
3.00
4.0 0
5.00
6.0 0
7.00
Issue 55 // TheTradeNews.com // 91