(LONDON) Liberum, the independently-owned pan European investment bank, has developed new electronic trading functionality called LIBPLUS that means professional clients can execute equity flow in multiple dark venues simultaneously, automatically and with one click.
For a quick overview, play the one-minute video below.
Liberum has acted ahead of the advent in 2018 of a revised Markets in Financial Instruments Directive, or MiFID II, which will make it imperative that dark venues are selected fairly and intelligently.
LIBPLUS means that dark order flow can now visit 34 venues in an instant, boosting the chances of executing blocks of stocks whilst minimising signalling.
“In our view, the analysis of what constitutes best execution trade-by-trade is set to become more intensive and granular and LIBPLUS helps meet that challenge,” said Dominic Lowres, Liberum’s Head of Large Cap Cash Trading.
“MiFID II may result in some venues withering whilst others flourish,” he added.
“LIBPLUS will visit venues democratically where liquidity is meaningful. This removes the need to constantly reassess venues daily,” he said.
LIBPLUS is Liberum’s new Smart Order Router that delivers a high spread capture of 53% on average - higher than Liberum’s peer group - according to market data analytics from Fidessa.
A spread capture value is the price compared with the bid-offer spread. As an example, 50% means a mid-point match.
As Liberum developed LIBPLUS it found that many clients were restricting Minimum Fill Sizes so as to avoid tiny and implicitly costly fills on big ticket trades.
LIBPLUS answers this. It passports a client order to 20 dark venues with normal minimum fill sizes whilst simultaneously revisiting 14 of these with a much larger minimum fill size of around US$50,000.
Dark venues are off-exchange trading destinations where institutional investors can trade blocks of securities.
LIBPLUS is not a retail product and Liberum is unable to respond to enquiries from retail investors. Professional clients only can contact Dominic Lowres, Liberum’s Head of Large Cap Cash Trading on +44 (0) 20 3100 2103 or by email at firstname.lastname@example.org
Media inquiries: Redleaf Polhill
Call: +44 (0)20 7382 4747
Liberum is a pan-European investment bank. Its core activities are research, sales and trading in large, small & mid cap pan-European equities, as well as investment banking and advisory services including IPOs, secondary issues and mergers and acquisitions.