Liquidnet Announces 2006 Results

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.