Liquidnet’s new offering looks to arm institutional buy-side traders for the future

Liquidnet, the global institutional trading network, today announced the launch of Liquidnet Virtual High Touch, a new category of buy-side technology that brings together advanced data analysis, adaptive learning algorithms, unique liquidity search tools, and real-time analytics into a new trading experience.

As a key component of Virtual High Touch technology, Liquidnet also announced an upgrade to its Algo Ranking Model (ARM) with Real-Time Course Correction, which has been designed to enhance the way institutional traders make decisions around algorithmic trading.

Algo Ranking Model is currently available for US equities and will be rolling out globally in 2017.

Seth Merrin, CEO and Founder Liquidnet

Seth Merrin, CEO and Founder

Seth Merrin, Founder and CEO of Liquidnet stated:

As services from traditional sell-side providers continue to decline, the buy side is stepping up to fill that void. This is where Virtual High Touch comes in. Whether it’s delivering real-time strategy recommendations or unlocking hidden liquidity opportunities, Liquidnet is continuously working on ways to help traders enhance their decision making and deliver even more value and performance to their funds and their firms.

Launched in August last year, Liquidnet’s Algo Ranking Model generates a complete profile of an order before ranking Liquidnet’s Next Gen Algos according to the trader’s execution objectives. Based on Member feedback over the past year, it now recommends more detailed combinations of algos and parameters.

In addition, traders can customize recommendations based on their own intuition about a symbol’s price direction with a new ‘Trader Conviction’ feature. 

Algo orders created through Liquidnet’s Algo Ranking Model will now also benefit from the newly-launched Real-Time Course Correction. After a trader has selected a Liquidnet Next Gen Algo, the model will continue to monitor market conditions in the background. If market conditions change and a new algo is ranked higher, the trader will be alerted in real time and presented with an option to change course.

Rob Laible, Global Head of Execution & Quantitative Services at Liquidnet stated:

It is very clear to us that a buy-side trader armed with Virtual High Touch technology has great potential to be a key contributor to institutional performance. Virtual High Touch is about empowering them to not only become more self-sufficient in achieving best execution, but also demonstrate the alpha they are capturing for their firms. These offerings are just the beginning. We will continue to provide the buy side with the tools, intelligence, and market insight they need to further transform their role.

Algo Ranking Model and Real-Time Course Correction join Targeted Invitations as foundational components of Liquidnet Virtual High Touch. Launched earlier this year, Targeted Invitations allows qualifying Members to seek out additional block liquidity by sending actionable invitations within the Liquidnet community, while still keeping both sides anonymous.

For more on the new offering and to hear from CEO Seth Merrin check out the video below:

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