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
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
"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
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.
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.
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.
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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
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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
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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
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