Liquidnet saw 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 USD6 billion, marking a four per cent increase on the previous quarter which was also a record.
The region reported record average daily liquidity of USD11.6 billion, a nine per cent jump from Q1 2014.
The average trade size across the region during the quarter was around USD1.2 million, an increase of seven per cent 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 per cent 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 per cent, over the same period a year earlier. For Liquidnet Japan, volumes from January to June 2014 were up 149 per cent over the corresponding period in 2013.
Liquidnet 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) 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.”
