Liquidnet, the global institutional trading network, reports record third quarter performance in Europe as institutional investors increasingly search for size and improved execution quality, ahead of the Markets in Financial Instruments Directive (MiFID II) rules taking effect in January 2017. These rules are expected to bring about tougher best execution requirements and caps on trading within dark pools.
In Q3 2015, average execution size was $1.5 million. Total principal traded climbed to $34.7 billion, up 18.98 percent year-over-year (YoY), with continued strong growth coming from Continental European members up 41 percent to $2.8 billion total principal traded YoY.
“More and more institutional investors are turning to each other to execute large trades with minimum market impact and maximum anonymity,” said Mark Pumfrey, head of EMEA at Liquidnet Europe. “Following on from a record third quarter, we are seeing this momentum continuing into Q4 with four record breaking $1 billion plus trading days so far.”