Liquidnet Announces 2006 Results

Liquidnet Announces 2006 Results

January 24, 2007

Company Ranked #1 Broker for Global Trading and #1 Broker
for European Clearing and Settlement


    NEW YORK, Jan. 24 /Xinhua-PRNewswire/ -- Liquidnet, the
#1 electronic global marketplace for block trading,
announced its 2006 results today, finishing the year with
two major distinctions: #1 broker for global trading based
on transaction cost savings;(1) and #1 broker for clearing
and settlement for European equities.(2) 

    "Liquidnet is extremely proud to be named #1
broker for global trading," said Seth Merrin, CEO of
Liquidnet. "Our ranking means that our Members saved
more in transaction costs by trading in Liquidnet than with
any other broker - globally. It's a great acknowledgement of
our mission to bring greater efficiencies to the way
institutions trade equities."

    In 2006, Liquidnet made significant achievements in
each of its five major operational centers: United States,
Europe, Canada, Asia Pacific and Japan (see below for
select highlights).

    U.S. Highlights

    By the close of 2006, Liquidnet's average daily volume
in U.S. equities reached 53.6 million shares, a 15 percent
increase over the third quarter 2006 and a 53 percent
increase over the same quarter last year. The record volume
traded in Liquidnet on any one day in 2006 was 84.5 million
shares. Liquidnet Members executed 232
one-million-share-or-above trades in 2006. The company also
ended the year with the largest pool of institutional-only
liquidity in the industry at more than 2 billion shares.

    "Liquidnet's U.S. equity volumes have continued to
climb. Volume traded by our Members in the first three weeks
of 2007 has already jumped to more than 66 million shares
per day," added Merrin. "In just under six years
of operations, we are now the eighth and ninth largest
broker for NASDAQ- and NYSE-listed securities,
respectively."(3)

    Liquidnet H2O, the company's latest product innovation
that enables Members to interact with additional liquidity
from Streaming Liquidity Partners (SLPs), reached several
major milestones by the close of 2006. The company added 10
SLPs, bringing the total number of live SLPs to 14. Our
liquidity partners collectively added nearly 1 billion
shares per day of active liquidity to the company's base of
2 billion shares of natural liquidity. The Liquidnet H2O
fill rate climbed to 13 percent in the fourth quarter, more
than double the average fill rate of other crossing
networks.(4)

    Europe Highlights

    2006 was Liquidnet Europe's third straight year of more
than 100 percent growth in total principal traded. During
the year, Liquidnet Europe Members traded more than 17.4
billion pounds Sterling, a 113 percent increase over 2005.
Total principal traded in the fourth quarter increased 32
percent over the third quarter 2006. In addition to U.K.
equities, the company now trades in 17 Continental Europe
markets, where the growth in principal traded was 340
percent above 2005 levels. At the close of 2006, Liquidnet
Europe was named the #1 broker for clearing and settlement
of U.K. and European equities.

    "After four years in operation, being named the
top broker in Europe for clearing and settlement is a
significant achievement for Liquidnet," said John
Barker, Managing Director of Liquidnet Europe. "An
important part of delivering best execution to our Members
is the successful clearing and settlement of their
transactions."

    Canada Highlights

    Liquidnet launched Canadian equities trading in October
2006. In the 47 days of trading leading up to year end,
Liquidnet Members traded more than 14 million shares of
Canadian equities, forming the first successful
institutional-only electronic alternative trading system
for Canadian equities. At the close of 2006, Liquidnet had
12 live Members in Canada, and more than 100 additional
Members throughout the U.S. and Europe with Canadian equity
assets under management. 

    "Liquidnet's successful launch in Canada opened
the door for institutional liquidity to flow in and out of
Canada more efficiently than ever before," said Robert
Young, Managing Director of Liquidnet Canada. "Canadian
institutions now have access to the significant amount of
Canadian liquidity held by Liquidnet Members around the
world."

    Asia Pacific and Japan Highlights

    In 2006, Liquidnet made major strides toward launching
Asian and Japanese equities trading. The company began
operations in both Hong Kong and Tokyo, appointing David
Klinger - former head of Asian Equity Execution at Credit
Suisse - as managing director of Liquidnet Asia, and Eisuke
Hattori as managing director of Liquidnet Japan. Liquidnet
plans to launch electronic equities trading in five Asian
equities markets in the second quarter of 2007. 

    About Liquidnet

    Liquidnet is the #1 electronic marketplace for block
trading. Liquidnet allows money management institutions to
trade large blocks of equities directly and anonymously
with significant price improvement and little-to-no market
impact. Liquidnet launched in 2001, and the company now
enables its Members to trade in 20 equity markets globally.
Liquidnet is headquartered in New York with offices in
London, Toronto, Tokyo and Hong Kong. Additional company
information is available online at http://www.liquidnet.com
.

    Liquidnet, Inc. is a member of the NASD/SIPC. Liquidnet
Europe Limited is regulated by the U.K. Financial Services
Authority and is a member of the London Stock Exchange.
Liquidnet Canada Inc. is regulated by the Ontario
Securities Commission and is a member of IDA/CIPF.
Liquidnet Asia Limited is applying to the Hong Kong
Securities and Futures Commission for the relevant license
/ authorization to conduct regulated activities in Hong
Kong and to the Australian Securities and Investments
Commission for the relevant license / authorization to
conduct regulated activities in Australia. Liquidnet Asia
Limited is not currently licensed, regulated or otherwise
authorized by the Monetary Authority of Singapore, and is
not currently holding itself out as operating a market in
Singapore. Liquidnet Japan Inc. is applying for a
license/approval from the Financial Supervisory Agency of
Japan and the Japan Securities Dealers Association.

    (1) Liquidnet's global ranking is based on a 2006
analysis of 
        transaction cost savings by Elkins McSherry.

    (2) Liquidnet's ranking is based on a 2006 study
conducted by ZYen Ltd.

    (3) Source: Plexus report, November 2006.

    (4) Source: TowerGroup report, February 2006.


    For more information, please contact:

     Nicole Olson
     Liquidnet Corporate Communications 
     Tel:   [phone]
     Email: [e-mail]


SOURCE  Liquidnet