Liquidnet Delivers 87% Transaction Cost Savings to Clients for Corporate Bond Trades

Liquidnet, the global institutional trading network, today announced the
results of an independent transaction cost analysis (TCA) conducted by
IHS Markit. The analysis found 87% transaction cost savings by
trading on Liquidnet Fixed Income, relative to the best dealer price at
the time of execution, based on prices available from the IHS Markit
feed.

In order to quantify the transaction cost benefits of trading against
natural buy-side liquidity, Liquidnet commissioned IHS Markit to examine
all buy-side to buy-side trades executed on Liquidnet Fixed Income in
the US and Europe during the 15-month period between Q1‘17 and Q1’18.

“The fixed income market has been slow to embrace TCA as historically
it’s been difficult to measure and results easily contested,” said Kevin
McPartland, head of market structure and technology research at
Greenwich Associates. “However, as data becomes more readily available
and analytics more sophisticated, ensuring best execution in the bond
market is quickly becoming more science than art.”

“Even though TCA is not the only metric that our Members focus on,
especially given some of the challenges with corporate bond data, it is
nevertheless an excellent tool to assess execution quality across
different venues and counterparties,” said Constantinos Antoniades, head
of fixed income at Liquidnet. “Trading with other buy-side Members in
Liquidnet is becoming more compelling by the day, especially with our
rapidly growing buy-side liquidity pool.”

Liquidnet Fixed Income reported record liquidity in June 2018 with more
than $20 billion in average daily buy-side liquidity, including more
than 900 buy-side blocks daily.

ABOUT LIQUIDNET

Liquidnet is the global institutional trading network where more than
920 of the world’s top asset managers and other like-minded investors
come to execute their large trades with maximum anonymity and minimum
market impact. As the global leader in large block trading, Liquidnet
provides access to unique trading opportunities in 45 markets across
five continents. Liquidnet approaches every market with the same bold
vision to provide a better, more efficient way to trade on a massive
scale. It is this focus on size, combined with the strength of its
network, disruptive technology, and commitment to transparency, that is
revolutionizing the way equities and corporate bonds are traded. For
more information, visit www.liquidnet.com
and follow us on Twitter @Liquidnet.

© 2018 Liquidnet Holdings, Inc. And its subsidiaries. Liquidnet, Inc.
Is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and
regulated by the Financial Conduct Authority in the UK, is licensed by
the Financial Sector Conduct Authority in South Africa, and is a member
of the London Stock Exchange and a remote member of the Warsaw Stock
Exchange and SIX Swiss Exchange. Liquidnet Canada Inc. Is a member of
the Investment Industry Regulatory Organization of Canada and a member
of the Canadian Investor Protection Fund. Liquidnet Asia Limited is
regulated by the Hong Kong Securities and Futures Commission for Type 1
and Type 7 regulated activities and is regulated by the Monetary
Authority of Singapore as a Recognized Market Operator. Liquidnet Japan
Inc. is regulated by the Financial Services Agency of Japan and is a
member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the
Australian Securities and Investment Commission as an Australian
Financial Services Licensee, AFSL number 312525, and is registered with
the New Zealand Financial Markets Authority as a Financial Service
Provider, FSP number FSP3781.

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