Liquidnet Reports Performance Highlights for First Half of 2010

Posted on Mon., Jul. 26, 2010

NEW YORK, July 26, 2010

Liquidnet, the premier institutional investment community, today announced aggregate performance highlights for both the first and second quarters (1H10) ended June 30, 2010.

“Liquidnet continues to strengthen its position as the leading global block exchange handling more block trades than any other venue with best execution and maximum price improvement,” said Seth Merrin, founder and CEO of Liquidnet. “In addition, we continue to provide our global Member community with unique institutional liquidity as we build additional services for our Members to create competitive advantages and enhance performance.”

Corporate Highlights

For 1H10, Liquidnet averaged approximately 1.8 billion shares a day of buy-side liquidity in our U.S. natural pool and 8.3 billion shares globally. Additionally, an average of more than 9.7 billion shares a day of third-party liquidity is delivered directly to Members from 27 top brokers and exchanges through Liquidnet's Supernatural® suite of products. Total volume traded was over 15 billion shares (US$228.7 billion principal) globally during the first half of the year. Other notable highlights from the first half of 2010 include:

Additional U.S. Trading Stats

For 1H10, executed volumes for Liquidnet H2O® blocks grew over 270% compared to 2H09 Volumes. Members saw over 70mm shares of available block liquidity daily in Q210 and the average execution size for 1H10 was approximately 13,000 shares.
For its U.S. negotiated pool, 65% of the time Liquidnet traded in a stock, it executed the 1st or 2nd largest print of the day for that stock during the first half of 2010. The average trade size for these prints was approximately 61,000 shares.

Patent Developments

Liquidnet continues to make progress with its pending patent infringement claims against Investment Technology Group, Inc. (“ITG”) in which ITG voluntarily dismissed its counterclaim against Liquidnet for tortious interference with prospective business relations in April. Separately, Liquidnet was awarded its second patent by the United States Patent and Trademark Office entitled “Electronic Securities Marketplace Having Integration With Order Management Systems” providing further validation for the company's innovation.

Liquidnet Research

In Q409, Liquidnet invested in OTR Global Holdings II, Inc., the parent corporation of OTR Global LLC, a premier alternative research company that generates unique and proprietary market intelligence for institutional investors worldwide. Through this partnership and other initiatives, Liquidnet continues to focus on bringing greater efficiencies and transparency between institutional investors and corporate management and expanding its global investment community to include traders, portfolio managers, analysts and issuers.
The Liquidnet Research Forums gained momentum by delivering unique and investable research information among institutional portfolio managers and analysts. During the first half of 2010, Liquidnet hosted four of these investor conferences including a health care research forum in Boston, and mobile marketing, footwear and agricultural research forums in New York.

Awards & Accolades

The company was ranked the number one broker in all three major trading categories - Large Trades (more than 50,000 shares), Medium Trades (10,000-50,000 shares) and Small Trades (less than 10,000 shares) - in a recent ITG Broker Edge™ study. These rankings were based on overall execution, which the study calculates as the difference between execution cost and estimated cost of the trade.

Global Highlights

As of the end of 1H10, Liquidnet now offers trading access to 36 equities markets around the world plus London and Luxembourg listed GDRs. In aggregate, the principal value of the securities traded through Liquidnet in these markets totaled approximately US$228.7 billion. Other highlights include:

Trading in Canadian equities for the first half of this year set new records in volume, increasing by 34% year-over-year with 197.7 million shares (US$3.0 billion principal traded).
Liquidnet launched equities trading in 6 markets including Poland, Lithuania, Estonia, Slovenia, New Zealand and Mexico.
Liquidnet continues to set records for principal traded in Asia-Pacific equities, with US$6.9 billion traded across six core markets including Australia, New Zealand, Japan, Singapore, South Korea and Hong Kong and representing more than 180 global buy-side members trading Asia-Pacific equities.
Trading in Asia during the first half of 2010 represented an increase of 98% (in US$ terms) year-over-year.
Liquidnet's growth in Asia has been underpinned by a number of high-profile industry awards including Best Crossing Network 2010 and Best Electronic Trading Platform 2009 in the Asia Asset Management Awards, and Best Electronic Trading Platform 2009 and Dark Pool of the Year in the Asian Banker Awards.

June Trading Statistics

About Liquidnet

Liquidnet is the premier institutional investment community, bringing together the world's largest asset managers and public companies on a single network that directly connects traders, portfolio managers, analysts and listed companies. Liquidnet enables Members of its community to achieve greater performance by moving from investment idea to implementation faster, ultimately retaining more alpha throughout the entire institutional investment cycle. Launched in 2001, the Liquidnet Community™ extends to 36 equity markets across five continents. Liquidnet is headquartered in New York with offices in Boston, London, San Francisco, Chicago, Toronto, Tokyo, Hong Kong, Sydney and Singapore. For more information on the Liquidnet Community™, its liquidity, block executions, and additional investment capabilities, visit liquidnet.com.

A registration statement relating to the Class A Common Stock of Liquidnet Holdings, Inc. has been filed with the SEC, but has not yet become effective. The Class A Common Stock of Liquidnet Holdings, Inc. may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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1. Consists of shares of U.S. equity securities executed in our negotiation and Liquidnet H2O® ATSs and third party execution venues.

2. Negotiation product.

3. Amounts adjusted to reflect foreign exchange rates for the same period from 2009.

* Historical numbers may be subject to revision.

Melissa Kanter

Global Communications

Liquidnet Holdings, Inc.

E mkanter@liquidnet.com

T +(1) 646 660 8469

C +(1) 917 848 3006

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