INSTITUTIONAL

VOICE
2015
More than 115 traders from
Liquidnets global community shared
their thoughts on some of the
most important issues that they
are facing every day. This years
survey looks at key issues impacting
execution, market structure, and
global investing.

LIQUIDITY MATTERS

75%

TOP THREE VENUE

SELECTION FACTORS
BY REGION:
US
1. Access to liquidity
2. I trust them
3. Level of transparency

of US traders ranked
access to liquidity as the
most important factor
when selecting a
trading venue

EMEA
1. Level of transparency
2. Easy to use
3. Access to liquidity

84%

of respondents globally are

concerned about being able to
source enough liquidity in the market.

GLOBAL
1. Access to liquidity
2. I trust them
3. Level of transparency

MARKET CONFIDENCE TO DRIVE INFLOWS

TRIGGERS FOR POSITIVE EQUITY INFLOWS

65%
INCREASE
IN MARKET
CONFIDENCE

65% of asset
managers globally
believe that the #1
trigger for positive
equity inflows will be
an increase in market
confidence

Other
Regulatory crackdown
on trading venues
Leading indicators up

Rise in US interest rates

At only 10%, a rise in interest rates is not

seen as a major trigger for positive inflows

Traders globally believe that markets such as the US, Western

Europe, China, and India have the highest investment potential.
Increase in market confidence (65.05%), Rise in US interest rates (9.71%), Leading indicators up (6.8%),
Regulatory crackdown on trading venues (1.94%), Other (16.5%)

TRADERS KEY CONCERNS: PREDATORY

TRADING IS TOP OF MIND

SKILLS TRADERS
NEED TODAY

GLOBAL
1. Technological prowess
2. Global trading experience
3. Market structure expertise

US
1. Technological prowess
2. Global trading experience
3. Market structure expertise

75%

are concerned about

conflicts of interest
in the industry

88%

of respondents globally
are concerned about
predatory traders in
some dark pools

EMEA

76%

1. Multi-asset classs expertise

2. Technological prowess
2. Market structure expertise

believe that HFT

strategies will
negatively impact
some of their orders

DARK POOL CONSOLIDATION

INEVITABLE
NEARLY

50%

REGULATORY CONFIDENCE LOW

Less than

10%

of the US firms surveyed had

confidence in the SECs ability to
make decisions that will positively
impact market structure.

Meanwhile,

4%

of firms globally believe that

there will be a consolidation of
alternative trading venues by
2016. An additional 35% believe
we will see consolidation
alongside the launch of
new venues.

of the firms in EMEA

had confidence
in MiFID II

ALGO QUALITY UP
A

33%
DECREASE

in the number of dark pools by

the end of 2015 is predicted by
the US buy side. On average,
respondents believe there
will only be 30 by the
start of 2016.

61%

of respondents globally agree

that the quality of algos has
improved over the last two years.

Regional Break Down:

US: 57% Canada: 67% EMEA: 68% APAC: 66%

METHODOLOGY
Liquidnets Institutional Voice Survey was developed to gauge
insights and market sentiment of institutional traders working for
the worlds leading mutual, pension and hedge funds. The results
from this years survey are based on more than 115 responses
from Liquidnets network of leading asset management firms based
in North America, Europe and the Asia-Pacific region. Participants
were polled during a five week period ending January 12, 2015.

NEW YORK LONDON HONG KONG SINGAPORE SYDNEY TOKYO TORONTO

ON A DIFFERENT SCALE

2015 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 Services Board 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 and a member and block agent of Xetra MidPoint order
book. Liquidnet Canada Inc. is a member of IIROC and a member of the Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and
a provider of automated trading services pursuant to the Securities and Futures Ordinance 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.