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Liquidnet Prepares for Launch of European Trading Desk

Last week Liquidnet entered the final phase of testing for the new Liquidnet European Trading Desk, based in the London office, which the company expects to launch in the near future. The trading desk will utilize a team of traders with access to the latest technology. According to John Barker, managing director Liquidnet Europe, Stephen Farrell, who has a strong trading background, is managing the desk and is heading up Liquidnet'ssearch for additional trading experience to add to the desk.

The agency-only desk will receive orders including single-stock, programs and portfolios as well as the residuals from orders executed by members via Liquidnet's desktop negotiation system. The desk will offer a menu of algorithmic strategies, as well.

Initially the desk will accept orders submitted manually. "The desk is in its infancy and we are currently looking to manually receive order flow to test the various services that we have added," says Barker. "We have plans to have our first clients providing order flow electronically through FIX within the next few weeks as we expand the offering, " says Barker.

Existing members of the Liquidnet negotiation system can send orders in European and South African securities to Liquidnet's European trading desk to interact with liquidity in Liquidnet, while the trading team "intelligently manages their orders into the order books and local markets," says Barkers. "A number of strategies will also be available for our members to use in the next month or so," says Barker.

Also, Liquidnet launched trading in Cypriot equities last week, which means the electronic institutional marketplace, now offers trading in virtually all Western European equity markets and a growing portion of the rest of Europe, says Barker. The addition of the Cyprus Stock Exchange also extends Liquidnet's global footprint to 30 global equities markets — which the company says is more than any othet dark pool in Europe — including AIM securities, London Stock Exchange-listed GDRs (global depository receipts), which give members access to investment opportunities in 26 additional markets.

According to Barker, Liquidnet is meeting the local exchange requirements of printing executions to the Cyprus Exchange by utilizing a local broker for reporting onto the exchange.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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