[ S U R V E Y | A L G O R I T H M I C T R A D I N G ]
Liquidnet
Liquidnet’ s overall average score in this year’ s survey was 5.85, an improvement from 2024 with an increase of 0.15, however falls short of the survey average( 6.00) by the same amount. On a positive note, the agency broker achieved upticks across most of the categories in 2025, with the largest year-on-year increase being customer support( 0.50) and ease of use( 0.40). The least improved category was price improvement, which declined by-0.24. Liquidnet’ s highest scores were in breadth of dark pools( 6.33), customer support( 6.32) and ease of use( 6.20).
When compared across the category averages, Liquidnet outperforms the benchmarks in three areas, the most notable being access to dark pools( 0.26) and customer support( 0.14). Liquidnet’ s algorithms deliver strong performance state the broker in its provider submission to the survey. Algos are developed along two main investment axes: liquidity and alpha and access the Liquidnet pool, designed for higher fill rates and fill sizes at low impact cost.
This year, Liquidnet received 65 responses- down
from 85 in 2024- which ranks the broker twelfth in terms of submission numbers. Around 26 % of long-only managers responding to Liquidnet indicate they have between $ 1 billion and $ 10 billion in AUM. In addition, 43 % of the respondents represented those firms managing $ 10 billion in assets or more. The UK( 32 %) and Europe( 40 %) collectively represented 72 % of the respondents, with the remainder split between North America( 26 %) and APAC( 2 %). The most commonly used algo performance measurement metrics were VWAP TCA, implementation shortfall TCA, and liquidity capture.
Sample feedback from respondents included the following:
• Excellent coverage and liquidity seeking capabilities
• Excellent liquidity seeking
• Great for combining block trades with algos
• Access to more dynamic algos
• Access to trajectory crosses
LIQUIDNET RATINGS FOR ALGORITHMIC PERFORMANCE
Increased trader productivity |
Reduced market impact |
Execution consistency |
Cost Speed Anonymity Price improvement Customisation |
5.99 6.08 5.88 5.63 5.73 5.99 5.53 5.31
Ease of use |
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility and sophistication of SOR |
Algo monitoring |
Average score |
6.20 5.63 6.32 5.68 6.33 5.71 5.77 5.85
KEY STATS Overall Outperformer: NO Category Outperformer: X3
6.33
Highest score( Breadth of dark pools)
|
5.31
Lowest score( Customisation features)
|
0.50
Most improved( Customer support)
|
-0.24
Least improved( Price improvement)
|
74 // TheTRADE // Q1 2025 |
|
|
|