Liquidnet

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Liquidnet
IndustryBrokerage
FoundedApril 2001; 17 years ago (2001-04)
FounderSeth Merrin
Headquarters,
Key people
  • Seth Merrin (Founder & CEO)
  • Mark Pumfrey (Head of EMEA)
  • Lee Porter (Head of APAC)
Websitewww.liquidnet.com

Liquidnet is a global institutional investment network that connects asset managers with liquidity. Liquidnet trades in 46 equity markets for asset management firms who collectively manage US$33 trillion in equity and fixed income assets.[1]

Liquidnet is headquartered in New York City and has offices in Boston, Dublin, London, San Francisco, Hong Kong, Singapore, Sydney, Tokyo, and Toronto.[2]

History[edit]

Liquidnet was founded in April 2001 by Seth Merrin as a wholesale electronic marketplace where institutional investors could trade large blocks of stocks.[3]

Merrin estimated that the network needed at least 100 buy side firms live on Day One to create a critical mass. This number was revised to 75, but the company ultimately launched with only 38 institutions.[3]

Merrin describes his company as “creating marketplaces that enable institutions to trade in size with the efficiency that they sorely need.”[3] In the U.S., Liquidnet’s average execution size of 50,000 shares is 200 times the size of the 250-share average traded in all lit and dark venues. Liquidnet’s average execution in international equities is reportedly 100 times larger than the average.[3]

Liquidnet has an Equity Capital Markets and Issuer Services group which leverages its community of institutional investors to determine institutional demand for a stock.[4]

In January 2010, Liquidnet announced a strategic investment in OTR Global LLC, a securities research and brokerage firm.[5]

In October 2011 Liquidnet launched a private shares market.[6] As part of Liquidnet’s equity capital markets division, the Private Shares group works with institutional investors and companies looking to trade private shares.[7]

In July 2011 SIX Swiss Exchange and Liquidnet launched a platform for non-displayed equity block trading.[8] The platform allows SIX Swiss Exchange members and Liquidnet’s buy side members to execute large block trades.[9]

In 2014, Liquidnet acquired bond trading platform Vega-Chi, a world leader in electronic trading facilities dedicated to high yield bonds and convertible bonds.

In 2017, Liquidnet acquired OTAS Technologies, a market-leading analytics platform that delivers actionable market intelligence and context directly to institutional traders and portfolio managers.

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References[edit]