Algos to help institutions navigate liquidity pools and optimise their block executions improving execution performance
Liquidnet, the global institutional trading network, today announced the launch of its EMEA Next Gen Algo suite, which is designed to enhance the trading performance of its institutional Members.
Liquidnet’s Next Gen Algos are the only ones that fully leverage Liquidnet’s network of more than 800 global institutions offering over $20 billion of EMEA average daily liquidity. Over 15% of algo executions are traded in Liquidnet with an average execution size of $590k (Q4 2015). Liquidnet is also introducing a special “I Would” feature which gives Members additional control over the blocks they access in Liquidnet whilst using the algo suite.
The Next Gen Algo suite includes the launch of Liquidnet’s new liquidity seeking algo, Barracuda, which has been designed to simultaneously seek a block in Liquidnet whilst opportunistically searching for available liquidity across both lit and dark markets. Barracuda intelligently executes more when favourable liquidity conditions exist and slows down when liquidity is scarce or less attractive.
Chris Jackson, European Head of Liquidnet's Execution and Quantitative Services (EQS) Group, commented on the launch: “Algos can only be as good as the liquidity they access and the Next Gen Algo suite combines Liquidnet’s deep pool of institutional liquidity, with intelligent access to liquidity from external lit and dark venues. In current volatile market conditions, we see significant demand from our Members and clients for algo solutions that combine the value of our block offering, with the opportunity to execute in the broader market.”
“Ahead of MiFID II’s double volume caps, algos that both intelligently access the lit market and large-in-scale blocks in the dark, will become more and more important to our Members,” Jackson added.
Liquidnet’s Next Gen Algos were successfully rolled out in the US in August 2015, resulting in a 61% year-on-year increase in average daily volume driven by algorithmic execution.
Liquidnet remains strongly committed to its EQS business which has seen significant growth of 211% year-over-year. As an independently aligned interest agency-only execution broker, Liquidnet’s EQS focus for 2016 will be to deliver the next generation of execution tools, service and support in order to help its Members and clients achieve best execution.