In a move to enhance its block trading capabilities, Liquidnet, an agency execution specialist, has unveiled its SuperBlock initiative. The first offering under this initiative, SuperBlock Matching, allows traders to easily signal and participate in exceptionally large or illiquid block trades.
Liquidnet Launches SuperBlock Initiative to Facilitate Large, Illiquid Trades
The SuperBlock initiative is designed to leverage Liquidnet's global buy-side community and expertise in block trading to create a protected space for executing the most challenging trades. SuperBlock Matching aims to provide a more efficient and user-friendly environment for Liquidnet's members by focusing on trades that vary in size based on market and stock market capitalization.
"SuperBlock is a direct response to a request from our Membership and an extension of our existing block trading offering," stated Mark Govoni, the CEO of Liquidnet.
The launch of SuperBlock Matching marks the first in a series of planned workflows and services under the SuperBlock initiative, which aims to help Liquidnet's members find unique liquidity and execute their most difficult trades more easily.
As a global markets infrastructure and data solutions provider, Liquidnet continues to expand its network, which currently includes over 1,000 institutional investors managing a combined $33 trillion in equity and fixed-income assets across 49 markets and six continents.
"Fast-forward to today, and we have an efficient environment that we believe will significantly improve opportunities for members to systematically trade very large blocks," said Rob Cranston, the Global Head of Equities Product at Liquidnet. He also credited the company's innovation hub, Liquidnet Labs, with developing and testing SuperBlock Matching.
Liquidnet's Expansion and Partnerships in the Financial Industry
The technology-driven agency specializing in execution services has been making significant strides in expanding its global listed derivatives offering. In April, the firm hired Alex Grinfeld, a former Executive Director at Morgan Stanley, to co-head its futures business in the Americas.
Towards the end of last year, Liquidnet announced a partnership with BondIT, a provider of investment technology, to integrate BondIT's Scorable Credit Analytics into Liquidnet's fixed-income trading platform. This integration leverages data science, explainable AI, and machine learning solutions to enhance the platform's capabilities.
Also in late 2023, Liquidnet unveiled a new pre-trade analytics tool for listed derivatives, available in both the US and Europe. The tool aims to provide valuable insights, such as volume, liquidity, and projected activity, to traders before they execute a trade, empowering them to make more informed decisions.
Meanwhile, TP ICAP, Liquidnet's parent company, reported a net statutory profit of £74 million for 2023, with an adjusted figure of £227 million. Despite a 28.1 percent decline in the statutory profit, the adjusted figure saw an increase of 17 percent. Further, the company allocated £30 million to its buyback program, demonstrating its financial stability and commitment to shareholder value.
Although revenue from the Liquidnet division experienced a slight decline of 1%, the group emphasized the successful completion of Liquidnet's integration, which resulted in annualized cost savings of £43 million, surpassing the initial target of £30 million.
