Liquidnet Chief Executive Seth Merrin called for a new market structure where which institutional investors trade alongside retail markets run by exchanges, in a speech to the World Exchange Congress in Madrid.
Such a structure would make the markets more efficient, said Merrin, adding that exchanges must look beyond their recent push for mergers and acquisitions, and instead return to their roots as trading venues that serve listed companies and investors.
"Exchanges, long the center of capital creation in their local markets, are well positioned to become a gateway to the rest of the world by creating borderless trading opportunities that benefit all participants," Merrin said.
Merrin added that Liquidnet is slated to open its exclusive liquidity pool to SIX Swiss Exchange members during the second quarter, a plan first announced in January. The arrangement is also designed to aid Liquidnet's members as well, since they'd gain access to liquidity provided by the SIX Swiss Exchange in return.
"We have made it easy for an exchange to go global," Merrin said in prepared remarks. "By combining liquidity pools with the exchanges, we are presenting more investment opportunities for the more than $12.5 trillion in investable assets that our members - the institutional investment community - represent."
Merrin also said it's important to acknowledge "the scale and size of the institutional market and the need for them to have a venue to trade safely and efficiently in the size they need away from the retail market.
Liquidnet, a trading platform for asset managers, helps more than 630 investment firms execute orders in 39 markets around the world. As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio