The TRADE 63 - Q1 2020 | Page 90

[ 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 ranks it seventh in the algo provider peer group. iquidnet is a New York-based global institutional Liquidnet receives the highest ranking of all firms in two investment network that connects asset managers with categories: reduced market impact (6.11) and dark pool liquidity. Liquidnet trades in 46 equity markets for over access (6.42). It also scores the second-highest mark in an- 1,000 institutional investment firms. The company offers onymity (6.09). Lastly, Liquidnet achieves the third-high- a range of execution solutions, workflows, and liquidi- est ranking in two areas: price improvement (5.78) ty-sourcing techniques in equities and fixed income and customer support (6.24). Broadly speaking, trading. Liquidnet shows improved scores in most cate- Liquidnet receives the most responses by Average gories this year, with the following important long-only managers surveyed (42). Twen- Score upticks: dark pool access (0.61), data on ven- ty-six percent of clients looking to Liquidnet ue/order routing logic or analysis (0.54), speed for trading expertise manage over US$50 (0.19), and anonymity (0.18). The company billion in AUM. Fifty-five percent of clients also sees a notable decline in execution consult- captured in this year’s survey trade at least half ing (0.23) year-over-year. of the value of their portfolio algorithmically. The company has an average score of 5.70, which 5.70 LIQUIDNET RATINGS FOR ALGORITHMIC PERFORMANCE Increased trader productivity Reduced market impact Execution consistency Cost Speed Anonymity Price improvement Customisation 5.84 6.11 5.73 5.32 5.52 6.09 5.78 5.14 Ease of use Data on venue/order routing logic or analysis Customer support Execution consulting Dark pool access Flexibility and sophistication of smart order routing Algo monitoring capabilities 5.78 5.57 6.24 5.29 6.42 5.43 5.28 KEY STATS 6.42 5.14 0.61 -0.23 Highest score (dark pool access) Lowest score (customisation) Most improved (dark pool access) Least improved (execution consulting) 90 // TheTRADE // Spring 2020