Institutional trading volumes in the public markets may still be languishing, but new figures from independent block crossing network Liquidnet suggest buy-side investors are regaining confidence.
In recent weeks, Liquidnet has seen daily order flow in Europe reach $20 billion, having dropped to $12-14bn in the first quarter. At the same period in 2008, daily volumes were at $30bn. Liquidnet specialises in executing equity orders in large size and its volumes can serve as a proxy for the trading activity of big investment groups that typically buy and sell stock in large blocks.
John Barker, managing director, Liquidnet Europe, acknowledges that, in line with other venues, Liquidnet felt the impact of lower trading volumes across Q4 2008-Q1 2009. But he asserts that there are strong signs that institutions are coming back to the market.
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