Liquidnet, a New York agency broker known for large block trades, today (Thursday) gave its trading algorithms a single brand, Meridian. The suite covers algorithms, venue access, analytics and AI-enabled tools, the TP ICAP Group unit said.
Liquidnet said the brand should help it win more institutional algorithmic order flow. It has built that business over several years next to its block trading franchise.
Liquidnet's revenue rose 1% year over year at constant currency to £194 million (about $260 million) in the first half, parent TP ICAP reported in August, following a 9% annual gain in the first quarter.
TP ICAP named algorithms among Liquidnet's strengths in the half. Block trading slowed in the second quarter, according to an Investing.com summary of the results slides.
Rival Execution Houses Pair Algorithms With Analytics
Virtu Financial also combines block crossing, through its POSIT network, with algorithmic trading for institutions. That is the pairing Meridian is built on.
Virtu's execution services revenue fell 19.1% year over year to $173.5 million in the second quarter, though the earlier period included a $67.0 million gain from selling RFQ-hub.
BestEx Research, an independent algorithm provider in Stamford, Connecticut, launched its AMS One platform for banks and brokers on June 11. On August 6 it added Pulse AI, which lets traders query its cost analytics through general-purpose AI assistants.
Bond trading has seen similar additions, with Tradeweb adding Citi and RBC algorithms to its US Treasury platform in March.
A $100 Billion Pool and 166 Outside Venues
Meridian's algorithms can reach Liquidnet's dark pool, which the company sizes at about $100 billion. They also tap more than 166 external lit and dark venues and bilateral liquidity providers in 56 countries.
Supported benchmarks include implementation shortfall, volume-weighted average price and market-on-close. Transaction cost analysis, quantitative services and execution consulting come in the same package, according to the company.
"Meridian gives those capabilities a distinct identity in the marketplace," Liquidnet Chief Executive Mark Govoni said in the statement. He said Liquidnet had invested heavily in its algorithms, which clients already use globally.
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The suite is open to what Liquidnet counts as more than 1,100 members, who can connect through order and execution management systems, FIX, the Liquidnet App or the trading desk.
TP ICAP agreed in 2020 to buy Liquidnet in a deal valuing it at $600 million to $700 million. The purchase closed in March 2021.
FINRA Censured Liquidnet Over Execution Reports in May
In May, the Financial Industry Regulatory Authority (FINRA) censured Liquidnet and fined it $250,000 over six years of inaccurate execution-quality reports, covering February 2018 to March 2024.
The monthly reports, required under Regulation NMS Rule 605, show how market centers handle and execute orders. Liquidnet misclassified 67 million orders across the filings, according to FINRA. It was Liquidnet's second censure for similar failures, after a $50,000 settlement in 2022.
