Liquidnet Announces Next-Gen Block Algorithms

Buyside traders looking for blocks are getting a new set of strategies to help execute their larger trades while outperforming benchmarks and maximizing alpha.

Block-trading venue Liquidnet announced the U.S. launch of its Next Gen Algos suite. The venue in a release said the algorithms are targeted at helping the execution of blocks trades, those in size of more than 10,000 shares.

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Liquidnet’s Next Gen Algos, have been in development for more than a year and are engineered to address three key institutional trader needs: seeking large-scale liquidity, outperforming benchmarks, and trading portfolios.

“Our focus for the rest of the year and into 2016 will be to deliver the next generation of execution tools, service, and support to maximize efficiency, protection, and effectiveness in the pursuit of best execution,” the firm said in a release.

Liquidnet 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,” said Rob Liable, global head of Liquidnet’s Execution & Quantitative Services (EQS) Group. “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.”

Starting with U.S. equities trading this week, Liquidnet’s Next Gen Algos will roll out globally over the coming months and into 2016.