Liquidnet, the number one electronic marketplace for block trading, announced its fourth quarter and end-of-year results today, the company's eleventh consecutive quarter of growth in volume traded.
Based on the most recent Plexus Group analysis, Liquidnet now ranks as the 10th largest NYSE institutional broker. The company also closed in on the top ten list for NASDAQ and is currently ranked as the 11th largest NASDAQ institutional broker.
Entering 2006, Liquidnet saw its Membership post record numbers for January, trading more than 47 million shares a day, with a record 68.8 million shares traded on January 25.
"2005 will prove to be a pivotal year for this industry, as electronic venues such as Liquidnet have emerged as the preferred trading venue for asset managers," said Seth Merrin, CEO of Liquidnet. "We signed and installed a record number of new Members last year. Every new Member adds to the liquidity pool. The larger the pool, the more efficient the marketplace. We are already seeing the effects in 2006."
Liquidnet's 2005 Volume up Significantly Compared to Leading Exchanges
Liquidnet's U.S. volume for 2005 grew by 53 percent over the previous year, trading more than 31 million shares a day on average. In the fourth quarter 2005, Liquidnet executed more than 2.2 billion shares (U.S. equities), with an average daily volume of 34.9 million shares. Liquidnet's annual growth stands out significantly in the industry where the growth rate for the New York Stock Exchange was only six percent while NASDAQ's volume fell 16 percent for the year
Liquidnet Provides Instant Access to the Global Marketplace
In a little more than a year, Liquidnet added seven new equity markets to its system. Today, Liquidnet Members are able to directly access 13 global markets through one electronic source, making it easier and more cost effective to trade international securities.
Liquidnet Europe also announced its fourth quarter and end-of-year earnings today. In three years, it has become the 16th largest agency broker on the London Stock Exchange. For the fourth quarter, Liquidnet Europe Members traded a record GBP 3.05 billion in principal, a 300 percent increase from the fourth quarter last year and a 54 percent increase over the third quarter, 2005. Total principal traded for all of 2005 was GBP 8.17 billion, a 137 percent increase above 2004.
Liquidnet's growth in principal traded stands out significantly in the industry where the growth rate for principal traded at the London Stock Exchange was approximately 8 percent. Liquidnet's average execution size across all 12 European markets was up to GBP 728,216 for the fourth quarter bringing the average for the year to GBP 644,148. In contrast, the average bargain size on the LSE for the fourth quarter was GBP 40,111, making Liquidnet Europe's average execution size more than 18 times that of the LSE.