Liquidnet, the global institutional trading network, says it has launched its Next Gen Algo suite. The product is designed to enhance the trading performance of its asset manager Member community around the world with precision tools built to address the complexities of institutional trading. Starting with US equities trading this week, it will roll out globally over the coming months and into 2016, it adds.
Liquidnet says the Next Gen Algos, in development for more than a year, have been engineered to address three key institutional needs: seeking large-scale liquidity, outperforming benchmarks, and trading portfolios.
“Our Next Gen Algos are the only ones that leverage Liquidnet’s deep and diverse pool of institutional liquidity spanning five continents and 13.7 billion shares in more than 7,500 symbols,” says Rob Laible, Global Head of Liquidnet’s Execution & Quantitative Services (EQS) Group. “As one of the few unconflicted, agency-only brokers with expertise in lit, dark, and block markets, we are uniquely positioned to design execution strategies that can navigate complex markets to efficiently access the liquidity that institutions need.”
To leverage this core liquidity, which accounts for around 20 percent of Liquidnet’s algo volume, Liquidnet says it is also introducing a feature that enables traders to set specific conditions and parameters for when they will accept a block opportunity while executing in the broader market.
“What we’ve heard consistently from our Members is that their biggest challenge is finding the liquidity they need while striving to achieve best execution,” Laible added. “Not only do the execution tools need to be robust, they also need to operate from an institutional trader’s perspective, tap into all valuable sources of liquidity, plus have the logic to prioritize and interact with it all effectively. After all, algos can only be as good as the liquidity they access.”
