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Liquidnet, the global institutional trading network, today announced record second quarter performance in Asia Pacific as the company benefited from strong demand across the region for safe access to block trading among large institutions.
Principal traded climbed to a record US$6 billion, marking a 4% increase on the previous quarter which was also a record. The region also reported record average daily liquidity of US$11.6 billion, a 9% jump from Q1 2014. The average trade size across the region during the quarter was around US$1.2 million, an increase of 7% over the first quarter.
Lee Porter, Head of Liquidnet Asia, says, “The rally in some Asian equity markets, combined with thinner volumes in public markets, drove more institutional investors to Liquidnet as they sought to secure large blocks on a safe and secure venue. This was reflected in our record performance, and the size of the liquidity pool, which ultimately offers investors more opportunity to find the liquidity they demand.”
A surge in the trading of Japanese equities contributed to record performance for the region and Japan, with a 144% jump in principal traded in Q2 2014 over the same period last year. Volumes climbed on Liquidnet’s platforms, even as trading in Japan’s public markets fell. On the Tokyo Stock Exchange, volumes for the period of January to May 2014 were down 20%, over the same period a year earlier. For Liquidnet Japan, volumes from January to June 2014 were up 149% over the corresponding period in 2013.
Liquidnet Increases Equity Trading Access to India
Liquidnet also announced that it has commenced the routing of orders of Indian equities, on behalf of global members. Orders can be executed either on the NSE (The National Stock Exchange of India Ltd. or BSE (Bombay Stock Exchange) through a locally licensed broker.
Seth Merrin, CEO and founder of Liquidnet, says “Liquidnet members, no matter where they are located, can today trade large blocks in 43 markets globally in a safe environment where they can control their trading experience. Our value proposition has never been stronger and our 740+ members, which include the world’s largest asset managers, can now access investment opportunities in markets that up until now have been too illiquid to invest in.”
The announcements came as Liquidnet was awarded ‘Best Crossing Network’ for 2014 at The Asset’s Triple A Asset Servicing, Fund Management and Investor Awards.
