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[ A L G O R I T H M I C T R A D I N G S U R V E Y ]

Liquidnet

Liquidnet saw a slight increase in the percentage of hedge fund responses it received in this year ’ s survey . Respondents were primarily from small-to-medium sized AuM brackets , with only one respondent managing more than $ 50 billion of assets . All but two of Liquidnet ’ s hedge fund respondents indicated that they have increased usage of the firm ’ s algos over the past year , with no firm noting a decrease in usage . Around one-quarter of respondents said they are reviewing using algos from other providers , with systematic internaliser routing selection and optimised LIS interaction cited as desired functionalities . For execution management , Liquidnet ’ s respondents cited systems from Bloomberg , ITG , Fidessa , Eze , Portware and Linedata , among others .

Liquidnet recorded decreased year-on-year scores from hedge funds in nine of the 14 categories reviewed in this year ’ s survey . The firm recorded significant year-on-year decreases in the ease of use ( down 0.87 ) and customer support ( down 0.9 ) categories , while its lowest ranking came in the speed category with a score of 4.9 , representing a year-on-year score decrease of 1.09 . Liquidnet ’ s most improved areas of performance were in the execution consulting ( 5.68 ) and dark pool access ( 6.24 ) categories , which increased by 0.78 and 0.62 year-on-year respectively . It also scored well in the anonymity category ( 6.04 ). Despite being unable to replicate the scores achieved in last year ’ s survey , Liquidnet did outperform the survey average this year in the reducing market impact , anonymity , ease of use , crossing , execution consulting and dark pool access categories .
RATINGS FOR ALGORITHM PERFORMANCE 2018 2017
Improve trader productivity
Reduce market impact
Execution consistency
Cost
Speed
Anonymity
Price improvement
Customisation
Ease of use
Crossing
Customer support
Execution consulting
Dark pool access
Smart order routing capabilities
5.37
5.92 5.84
6.12
5.36 5.55
4.49
4.71
4.90 5.99 6.04
6.37
5.05
5.36
5.01 5.09
5.59 6.46
5.42 5.72
5.43 6.34
5.68 4.90
6.24 5.62
5.30
4.97 0.00 1.0 0 2.00 3.00 4.0 0 5.00 6.0 0 7.00
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