[ 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