Institutional Traders Around The World Concerned By High Frequency Trading, Global Survey Shows

Liquidnet Finds More Than Two-thirds Worried About HFT

Concerns Run Highest In Global Firms And In NA And Europe

NEW YORK, Sept. 12, 2011 /CNW/ - More than two-thirds of traders at leading asset management firms around the world are concerned about the impact of high frequency trading (HFT) on the equities market, according to a survey by Liquidnet, the global institutional marketplace.

Liquidnet's Institutional Voice Survey polled traders worldwide from Liquidnet's community of 630 institutional asset management firms. These firms collectively manage equity assets of more than $13 trillion.

"The survey reveals that there is strong conviction among the vast majority of long-only traders that HFT is a negative for institutional investors trading in large size, adding some hard facts to what's previously been speculation about institutional attitudes," said Robert Young, President, Liquidnet Canada. "Investors are clearly concerned that their long-term investment styles are at odds with the speculative, nano-second profit taking approach utilized by high frequency traders." According to studies by independent industry research analysts Aite Group and Tabb Group, almost 75 percent of overall daily equities trading can be attributed to high frequency trading. Liquidnet does not allow high frequency trading in its marketplace.

Young added, "Institutional investors who manage trillions of dollars on behalf of Main Street investors need to be able to get in and out of positions in a safe and efficient manner away from the retail markets and internalization engines where HFT thrives, particularly in the volatile markets like we have been seeing recently."

Broadly, global traders are significantly more concerned with HFT compared to those who only trade in their regions. At the top five global institutions, 73% of the traders said they regarded high frequency trading as a high-priority market-structure issue.

Traders concerns around HFT ran the highest among those based in North America with two-thirds identifying themselves as concerned about HFT. Nearly 60% of European respondents and more than half in Asia Pacific expressed concern regarding HFT's impact on trading performance.

Survey Methodology

Liquidnet's Institutional Voice Survey was developed to gauge insights and market sentiment annually from traders from the world's leading mutual fund, pension fund and hedge funds, who hold approximately 70% of equity assets under management in the U.S. The results from this year's survey are based on more than 300 responses from firms based in North America, Europe and the Asia-Pacific region. Participants were polled during a three week period ending July 7, 2011.

About Liquidnet
Liquidnet is the institutional equities marketplace connecting institutional investors with superior liquidity to achieve greater performance safely and efficiently through best execution trading.  Liquidnet serves more than 630 institutional asset management firms that hold approximately 70 percent of the equity assets under management in the U.S. Liquidnet also continues to bring in new sources of safe, actionable liquidity from corporations, brokers, and exchanges. Launched in 2001, Liquidnet extends trading to 39 equity markets across five continents. Liquidnet is headquartered in New York with offices in Boston, London, San Francisco, Chicago, Toronto, Tokyo, Hong Kong, Sydney and Singapore. For more information on the Liquidnet community, its liquidity, block executions, and additional investment capabilities, visit www.liquidnet.com.

A registration statement relating to the Class A Common Stock of Liquidnet Holdings, Inc. has been filed with the SEC, but has not yet become effective. The Class A Common Stock of Liquidnet Holdings, Inc. may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

© 2011 Liquidnet Holdings, Inc. and its subsidiaries.  Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Services Authority in the UK and licensed by the Financial Services Board in South Africa, and is a member of the London Stock Exchange and a remote member of the Warsaw Stock Exchange and SIX Swiss Exchange. Liquidnet Canada Inc. is a member of IIROC and a member of Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and a provider of automated trading services pursuant to the Securities and Futures Ordinance and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is a licensed corporation under the Corporations Act of Australia, AFSL number 312525.

SOURCE Liquidnet

For further information:

Freda Colbourne
(416) 560-7794
colbournef@gmail.com

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