[ 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
Liquidnet’ s overall average score in this year’ s survey was 5.59, a slight improvement from 2024 with an increase of 0.02, yet falls 31 basis points short of the survey average of 5.90. The agency broker records some strong year-on-year increases in key aspects of service, including customer support(+ 0.58), customisation(+ 0.31) and cost( 0.29). The least improved category was dark pool access, which declined by-0.37. The firm’ s highest scores were reduced market impact( 6.12) anonymity( 6.11), and customer support( 6.08). Liquidnet outperformed the category average in three key service areas including reduced market impact, which lands within the top three of all providers profiled in this report. Access to dark pools and anonymity also performed well, surpassing the benchmarks by 10 and six basis points respectively.
Liquidnet’ s algorithmic platform launched over 10 years ago and offers a comprehensive suite of algos covering the global equities markets, as well as liquidity tools including targeted invitations, dark aggregation and RFQ liquidity. In addition, dynamic POV and smart blocks products combine alpha with liquidity, using signals from Liquidnet Investment Analytics to inform algo behavior. This year, Liquidnet received 23 responses from hedge fund managers and firms using hedge fund strategies- down from 26 in 2024, with 34 % of these representing firms with $ 10 billion or more in AUM( 17 % of respondents with AUM of between $ 10 and $ 50 billion and 17 % of respondents with AUM of more than $ 50 billion). The UK( 30 %) and Europe( 30 %) collectively represented 60 % of the respondents, with the remainder split between North America( 30 %) and APAC( 9 %). The most commonly used performance measurement metrics were implementation shortfall TCA, liquidity capture, and VWAP TCA.
Sample feedback from respondents included the following:
• Excellent liquidity seeking capabilities
• Feels like receiving high touch service from a low touch desk
• Requests more midpoint offerings
LIQUIDNET RATINGS FOR ALGORITHMIC PERFORMANCE
Increase trader productivity |
Reduce market impact |
Execution consistency |
Cost Speed Anonymity |
Price improvement |
Customisation |
Ease of use |
5.74 6.12 5.79 5.26 5.46 6.11 5.63 5.07 5.98
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility / sophistication of SOR |
Algo monitoring |
Average score |
5.33 6.08 5.11 6.00 5.25 4.98 5.59
KEY STATS Category Outperformer: X3
6.12 Highest score( Reduce market impact) |
4.98
Lowest score( Algo monitoring)
|
0.58
Most improved( Customer support)
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-0.37 Least improved( Dark pool access) |
76 // TheTRADE // Q2 2025 |
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