Commentary

Ronald Jordan
Traders Magazine Online News

Understanding Your Data is No Longer Optional

In this contributed article from Global Markets Advisory Group, the advisory discusses the importance of data and how organizations should augment existing skill sets and capabilities to add a data-focused perspective to their operating fabric.

Traders Poll

Do you expect SEC Chairman Jay Clayton to push for regulation in the cryptocurrency issuance and trading markets?

Yes

74%

No

5%

The CFTC will push for regulation

21%

Free Site Registration

May 25, 2007

Liquidnet Snatches Miletus

By Nina Mehta

Institutional broker Liquidnet last month announced its first-ever acquisition when it said it would buy Miletus Trading, an agency broker and quantitative algorithmic trading boutique with a suite of sophisticated single-stock and portfolio algorithms.

Market participants say the acquisition could ease Liquidnet's path into the program trading business. It could also make the current process of negotiating for blocks one at a time more efficient in the context of managing a portfolio.

Liquidnet founder Seth Merrin dismissed early speculation about what the acquisition meant. "We're buying Miletus not for their existing technology but for their brains and what we can jointly offer going forward," he told Traders Magazine. Liquidnet also doesn't intend to use Miletus's technology to ape anything its competitors--namely Investment Technology Group--are doing. "Our value proposition is not in providing algos to go into the public marketplace--the public market is the execution place of last resort for institutions," Merrin said.

Miletus was formed three years ago by Michael Capelli, an ITG veteran, and others. The firm's 28 employees, half of whom are in technology, will join Liquidnet's staff of 210.