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all-to-all market segments . We do not want to jeopardise the trust that Liquidnet ’ s clients have in the ecosystem ,” she says . “ Buy-side traders may be surprised to know that dealers are just as sensitive .
“ From my perspective , it is about understanding the needs and sensitivities of all market participants , and about being transparent . It ’ s about transparency , knowing how a particular protocol works , who ’ s in that market segment with you , and being clear on the rules .”
Rob Laible , head of equities at Liquidnet , also tells The TRADE that client feedback on the acquisition has been positive . He adds that with TP ICAP ’ s support Liquidnet is in a stronger position to develop innovative equities solutions for the buy-side in this era of data-driven investing , while continuing to partner with the sell-side to aggregate liquidity and deepen the equity pool .
" We have always told our shareholders that Liquidnet isn ’ t a cost savings deal , it ’ s a growth deal ."
JOHN RUSKIN , CEO OF AGENCY EXECUTION , TP ICAP clear that the marketplace very much values an agency offering . Liquidnet builds on and accelerates our buy-side strategy . It has brought us top calibre people , sophisticated technology , an impressive client base and very substantial connectivity – in both equities and credit .”
TP ICAP has already confirmed it will spend up to £ 30 million on Liquidnet in the next two years , with a focus on building out dealer-to-client rates trading capabilities . The spend is in addition to continued investment in Liquidnet ’ s equities platform and there are also plans to expand the team with an array of new hires across the business lines .
After reducing front-office headcount by roughly 20 % in recent years , Liquidnet has operated with a relatively small team based in London and New York that worked across several
“ The short answer is nothing has changed . Liquidnet is an unconflicted agency broker known for its culture of innovative collaboration with the buy-side ,” Laible says . “ TP ICAP understands the importance of the trust placed in Liquidnet and intends to build on our market-leading brand . That ’ s certainly an exciting prospect for our members .”
Liquidnet is not TP ICAP ’ s first acquisition aimed at increasing its engagement with the buy-side . In 2018 , the company acquired agency broker Coex Partners , which provides execution services to hedge funds , asset managers and other clients in listed derivatives and OTC FX .
Coex co-founder , John Ruskin , came to TP ICAP after the deal closed as CEO of agency execution and is working on the integration of Liquidnet . Ruskin highlights the importance of Liquidnet ’ s brand and immense client support for the platform , but he emphasises there is lots of room for growth , particularly in terms of distribution .
“ Liquidnet is a very trusted brand and the clients are so supportive ,” Ruskin tells The TRADE . “ TP ICAP ’ s acquisition of Coex validated what we do with the buy-side and it has become increasingly
38 // TheTRADE // Summer 2021