Liquidnet, the #1 electronic global marketplace for block trading, announced its first quarter 2007 results today, posting record performance in the United States, Europe and Canada.
The company also announced the completion of its acquisition of Miletus Trading, a leading agency-only brokerage firm that provides advanced, quantitative execution strategies and analytics to institutional investors.
"Our strategy of building a single global institutional marketplace is working, and we are well positioned to continue to benefit from the greater global emphasis on achieving best execution," said Seth Merrin, CEO of Liquidnet. "Our acquisition of Miletus Trading will enable us to continue to enhance our offerings and deliver even more liquidity to our Membership community."
Miletus Trading Acquisition
During the first quarter, 2007, Liquidnet completed its acquisition of Miletus Trading. Work has already begun on the first integrated product that will combine Liquidnet's 3 billion share liquidity pool with Miletus' leading quantitative analysis and execution strategies. The two entities will continue to operate as distinct companies in the near term.
"Liquidnet's acquisition of Miletus Trading will enable us to quickly deliver unsurpassed performance to our Members while expanding strategically," said Alfred Eskandar, CEO of Miletus Trading and Director of Liquidnet's Corporate Strategy Group. "We are excited about what the new functionality will mean to our Members. The completion of the acquisition is the first step in a comprehensive integration plan, which we will unveil in phases during the next quarter."
During the first quarter, 2007, Liquidnet made significant achievements in each of its three major markets: United States, Europe and Canada (see below for select highlights).
Liquidnet's average daily volume during the first quarter, 2007, was 56.8 million shares, a 6 percent increase over the fourth quarter 2006 and a 28 percent increase over the same quarter the previous year. The number of Members trading U.S. equities in Liquidnet reached 380, and they brought with them nearly 2 billion shares of natural liquidity in U.S. equities every day. During the quarter, Liquidnet climbed to become the seventh and ninth largest institutional broker for NASDAQ- and NYSE-listed securities, respectively.(1)
Liquidnet H2O, one of the industry's fastest growing liquidity pools, enables Members to interact with additional liquidity from Streaming Liquidity Partners (SLPs). By the close of the first quarter, Liquidnet H2O had 14 live SLPs that brought approximately 855 million shares of liquidity to Liquidnet every day on average; a 16 percent increase in liquidity over fourth quarter, 2006.
(1) Source: Plexus report, January 2007.
Liquidnet Europe Members traded £6.8 billion during the first quarter, 2007, a 31 percent increase over the fourth quarter, 2006. Growth in continental-European principal traded increased more than 150 percent from first quarter, 2006. Liquidnet Europe now supports trading in 20 European markets, with additional markets targeted to launch during the second quarter.
"I am very pleased at the continued growth in principal traded our Members are achieving in Liquidnet," said John Barker, Managing Director of Liquidnet Europe. "This increase is due to our growing pan-European liquidity pool providing more opportunities to trade with Liquidnet Members around the globe, as well as greater overall use by our expanding Member base. Our goal is to support trading in all of the core markets our Members trade in."
During the first quarter, 2007, Liquidnet Members globally traded more than 25 million shares of Canadian equities. At the close of first quarter, 2007, there were 177 Liquidnet Member firms contributing to the pool of Canadian liquidity, which averaged nearly 88 million shares per day.
"At nearly 88 million shares per day, Liquidnet Members have consolidated their Canadian liquidity into a single, accessible, safe venue, which is increasingly leading to outstanding executions in hard-to-trade Canadian stocks," said Robert Young, Liquidnet COO and President of Liquidnet Canada. "In a few short months, Liquidnet's model has attracted more Canadian block liquidity from customers than reported by any one of the traditional TSX dealers. Access to this liquidity means larger executions at better prices for investors in Canadian stocks."