Liquidnet, the top institutional brokerage firm for global trading,(1) today announced a partnership with Direct Edge ECN that enables Liquidnet Member firms to access over 300 million shares(2) of additional liquidity from Direct Edge via Liquidnet H2O.
Direct Edge joins Liquidnet H2O's existing 18 Streaming Liquidity Partners (SLPs) who combine to provide more than 1.9 billion shares a day of actionable liquidity(3).
With this partnership, Liquidnet also becomes a member of Direct Edge's Enhanced Liquidity Partner (ELP) program, allowing Direct Edge customer orders the ability to execute against Liquidnet's unique institutional liquidity.
"We are delighted to welcome Direct Edge as a partner, as we continue to provide our buy-side Members with one of the broadest and deepest liquidity pools in the industry," said Seth Merrin, Liquidnet CEO. "Such streaming partners have helped our Members enjoy an unprecedented crossing rate(4) as high as 62 percent within Liquidnet H2O."
"Our partnership with Liquidnet is an important milestone in our ability to deliver unique and complementary liquidity to our ECN customers through innovation and product differentiation," said William O'Brien, Direct Edge CEO. "As a leading institutional marketplace, integrating Liquidnet liquidity into our ELP program will provide better execution quality and speed to Direct Edge customers."
(1) According to Institutional Investor December 2006 issue (includes brokerages with greater than $2.25 billion in principal traded).
(2) Source: Direct Edge ECN.
(3) Orders, in shares, placed in H2O to be executed automatically at the mid-point. Share number is 3Q as of September 30, 2007.
(4) Crossing rate is the average of the percent of shares executed per order.