Liquidnet CEO, in Keynote at World Exchange Congress, Says Offering Safe and Efficient Institutional Trading is Key to Luring Global Investment

SINGAPORE--(BUSINESS WIRE)--Seth Merrin, the founder and CEO of Liquidnet, the global institutional trading network, says surging economic growth in Asia Pacific presents an increasing opportunity for regional stock exchanges to attract a greater share of global capital flows to their domestic markets.

Delivering the opening keynote address at the World Exchange Congress Asia 2011 in Singapore, Merrin outlined the need for a new market structure that includes designated venues for institutional investors to trade alongside the retail markets, operated by exchanges, to allow a safe and efficient marketplace for all participants. He noted that Asia Exchanges are at a pivotal moment to lead change that will attract inflows amid economic uncertainty in Europe and the U.S. Liquidnet provides more than 630 asset management firms safety for their trading information and the opportunity to execute their institutional-sized orders in 39 markets globally.

"Institutional investors around the world want to invest in the growth of Asian markets and stock exchanges have a significant opportunity to satisfy the needs of these global investors," commented Merrin. "Institutional investors have unique requirements, including size and scale, and when effectively addressed by exchanges will prompt more trading and investment flows. Asian exchanges should recognize that the issues inflicting economies in Europe and the U.S. present an enormous opportunity for growth."

To date, Asia Pacific has just a 13% share of global equity flow, compared to 80% in Europe and the United States. A recent Liquidnet survey, which polled traders worldwide from Liquidnet's Members, found 86% of European traders saw the most investment potential abroad including China (58%) and regional Asian markets ex-Japan and ex-China (40%).

Merrin, who was named in 2011 "Innovator of the Decade" by Advanced Trading Magazine, cited the example of a landmark agreement in which the liquidity in Liquidnet's exclusive liquidity pool is now available to SIX Swiss Exchange members.

"Collaboration has allowed a traditional exchange to attract more investable assets domestically while additional opportunities are presented for local brokers globally, as they tap into $12.5 trillion in investable assets that our Members - the institutional investment community - represent," Merrin said. "The agreement shows that partnerships can be used as an effective platform for exchanges to provide additional choice to their clients, which increases their relevance and potential revenues."

Volume growth for Liquidnet in Asia has soared in 2011. Principal traded jumped 37% to US$4.1bln from the same period last year. The average execution size through the third quarter was 16% higher at US$1.25 million from the corresponding period in 2010.

About Liquidnet

Liquidnet is the global institutional trading network that connects equity investors with the liquidity they need- in size, at any time, from anywhere. We go beyond what the current market can provide by defending and securing the integrity and anonymity of the block trade. We do this while continuously looking for ways to bring in new sources of safe, actionable liquidity from asset management firms, exchanges, brokers and corporations. Since we launched in 2001, our ability to anticipate and meet institutional demand has allowed us to extend trading to 39 equity markets across five continents for asset management firms who collectively manage US$12.5 trillion. For more information on the Liquidnet community, its liquidity, block executions, and additional investment capabilities, visit www.liquidnet.com

Contacts

Liquidnet Corporate Communications
Melissa Kanter, +1-646-660-8469
mkanter@liquidnet.com
or
Ryan Financial Communications
Damien Ryan, +852-3655-0512
damien@ryanfin.com