Liquidnet readies insto play.
Equities trading platform provider, Liquidnet has received an Australian Financial Services Licence (AFSL) that it said would enable it to provide a service enabling institutions to trade large blocks of equities directly and anonymously with one another.
Liquidnet said the granting of the licence by the Australian Securities and Investments Commission (ASIC) would mean that its platform would be able to electronically match potential buyers and sellers of large stock orders and then route those potential orders to an Australian Stock Exchange participant for execution.
The company said that the licensing approval would enable it to complete the first phase of its planned Asian rollout across Japan, Hong Kong, Singapore and Korea.
Liquidnet is also pursuing an Australian Markets Licence, which would enable it to operate as a market, providing institutions with an alternative trading venue not restricted by Australian Stock Exchange rules, which it claims disadvantages institutional investors.
Commenting on the granting of the AFSL, co-heads of Liquidnet Sam Macqueen and Stephen Zilioli said it represented a first step in the company’s long-term commitment to building an institutional marketplace in Australia.
They claimed frustration was growing among institutions forced to trade wholesale quantities in a retail-focused market.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
