Liquidnet,
a technology-driven agency execution specialist, announced on Wednesday that it
has partnered with a brokerage company, TP ICAP Midcap, which specializes in
the European Small and Mid-Caps (SMEs) sector. Due to the
newest partnership, both companies want to boost the block liquidity opportunities
for local SMEs using their client network, broad expertise, and technology.TP ICAP Midcap and
Liquidnet Join ForcesThis
partnership corresponds with Liquidnet’s goals to address complex liquidity and
execution issues the company’s members face. It also follows the acquisition of
Liquidnet by TP ICAP in 2021, highlighting the synergistic nature of
the two companies and the advantages they can offer to their clients.Chris
Jackson, the Global Head of Equity Strategy and Head of EMEA Equities at Liquidnet,
commented on the persistent challenge many asset managers face when finding
block liquidity in small and mid-cap names. He noted that this issue often
extends beyond merely “matching SEDOL codes in a venue.”SEDOL, short
for Stock Exchange Daily Official List, is a unique identification code comprised
of seven characters, assigned to securities traded on various exchanges in the
UK, including the London Stock Exchange. They are similar to the US Committee
on Uniform Securities Identification Procedures (CUSIP) numbers and help in identifying
and tracking securities in the local market.Jackson
expressed confidence in Liquidnet’s distinctive global liquidity network and
innovative liquidity discovery offerings as valuable assets in assisting their
members in tackling this challenge. He anticipates the integration of these
capabilities with TP ICAP Midcap’s specialized knowledge and liquidity to reduce
trading costs for their members further.On the
other hand, Charles-Henri Berbain, the Managing Director at TP ICAP Midcap, pointed
out that the scarcity of research hinders investment in SMEs, but the primary
concern for numerous asset managers is insufficient secondary market liquidity.”There
is a need to improve secondary market liquidity as a means of boosting
investment in SMEs,” Berbain added. “We have been specializing in
Small and Mid-Caps for nearly a decade and I’m truly excited to collaborate
with the Liquidnet team to address this challenge.”We’re pleased to announce that we have joined forces with TP ICAP Midcap, combining technology and expertise to solve liquidity challenges in hard-to-trade names. Full release: https://t.co/0c940e1XaI pic.twitter.com/1QsCQgwNAh— Liquidnet (@Liquidnet) April 26, 2023TP ICAP and Liquidnet Report
Solid 2022 Numbers TP ICAP
Group plc, the owner of TP ICAP Midcap and Liqudinet, published its yearly
financial report for 2022 a month ago. The company’s revenue experienced an increase of 13.5% (7% in constant currency), surpassing £2.1 billion.
Additionally, it ended the year with a pre-tax profit of £113 million,
exceeding both the previous year’s profit of £24 million and the forecasted
profit of £108 million by analysts.The revenue
generated by Liquidnet last year amounted to £325 million, reflecting an
increase of 25% and 18% in reported and constant currencies, respectively. In
addition, revenues from TP ICAP’s global broking operations increased 13% on
a reported basis and 7% on constant currency, with a total of £1.25 billion.
Within this sum, the FX and money market products contributed £302 million.In the most
recent updates, TP ICAP invested in UK-based FinTech company ipushpull. This strategic
investment aims to accelerate TP ICAP’s transformation of its core Global
Broking business through technology. In addition, the data and analytics
division of the company named Parameta Solutions has been approved by the
European Securities and Markets Authority to provide benchmark services.When it
comes to Liquidnet, the liquidity data solutions provider has announced the
addition of liquidity-seeking alerts to its equities trading application.
This article was written by Damian Chmiel at www.financemagnates.com.
