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Liquidnet, NYSE Euronext Team On Dark Pool Service

The Associated Press

NEW YORK (AP) — Electronic marketplace Liquidnet Holdings Inc. said Monday it is partnering with NYSE Euronext to allow corporate management access to information about large institutional investor trades, or so-called "dark pool" liquidity.

"Dark pool" is a term for the trading volume that is created by the buying and selling of large, or "block," amounts of shares by institutional investors like banks, pension funds and mutual funds. Such orders aren't available to the public.

Liquidnet is launching a new corporate access business called Liquidnet InfraRed, proprietary software which can be accessed through NYSE's network system. The software compiles data on large buy and sell transactions by institutional investors as well as news sentiment. The trend data could help corporate executives proactively reach out to their targeted institutional investors.

Corporate access is currently inefficient, said Seth Merrin, Liquidnet's chief executive. The new system seamlessly connects issuers and investors, he said.

"We believe that this new model will mitigate the inherent conflicts that often arise in servicing both the portfolio managers at our member firms and NYSE Euronext's corporate issuers," he said.

Liquidnet is planning other products to build upon its corporate access business as it turns to new technologies to improve efficiencies for businesses and investors.

The InfraRed product gives investor relations managers insight into buy and sell trends, block volume including peer and industry views, and other capabilities, said Lawrence Leibowitz, who heads the U.S. execution and global technology division for NYSE Euronext.

New York-based Liquidnet filed a registration statement on July 2, 2008, with the Securities and Exchange Commission for an initial public offering. The company said Monday the registration statement has not yet become effective.

NYSE Euronext shares slid 36 cents to close at $29.47.