INSTITUTIONAL

VOICE2015

More than 115 traders from Liquidnets global community shared their thoughts on some of the most important issues that they are facing every day. This years survey looks at key issues impacting execution, market structure, and global investing.

LIQUIDITY MATTERS

US1. Access to liquidity

2. I trust them

3. Level of transparency

EMEA1. Level of transparency

2. Easy to use

3. Access to liquidity

GLOBAL1. Access to liquidity

2. I trust them

3. Level of transparency

TOP THREE VENUE SELECTION FACTORS BY REGION:

MARKET CONFIDENCE TO DRIVE INFLOWS

84%

TRIGGERS FOR POSITIVE EQUITY INFLOWS

Increase in market confidence (65.05%), Rise in US interest rates (9.71%), Leading indicators up (6.8%), Regulatory crackdown on trading venues (1.94%), Other (16.5%)

Traders globally believe that markets such as the US, Western Europe, China, and India have the highest investment potential.

65% of asset managers globally believe that the #1 trigger for positive equity inflows will be an increase in market confidence

65%INCREASE IN MARKET CONFIDENCE

Rise in US interest ratesAt only 10%, a rise in interest rates is not seen as a major trigger for positive inflows

Leading indicators up

Regulatory crackdown on trading venues

Other

75%of US traders ranked

access to liquidity as the most important factor

when selecting a trading venue

of respondents globally are concerned about being able to source enough liquidity in the market.

TRADERS KEY CONCERNS: PREDATORY TRADING IS TOP OF MIND

88% of respondents globally

are concerned about predatory traders in

some dark pools

75% are concerned about conflicts of interest

in the industry

76% believe that HFT

strategies will negatively impact

some of their orders

SKILLS TRADERS NEED TODAY

1. Technological prowess2. Global trading experience3. Market structure expertise

GLOBAL

1. Multi-asset classs expertise2. Technological prowess2. Market structure expertise

US1. Technological prowess2. Global trading experience3. Market structure expertise

EMEA

REGULATORY CONFIDENCE LOW

ALGO QUALITY UP

Less than

10%

Regional Break Down: US: 57% Canada: 67% EMEA: 68% APAC: 66%

DARK POOL CONSOLIDATION INEVITABLE

of firms globally believe that there will be a consolidation of alternative trading venues by

2016. An additional 35% believe we will see consolidation alongside the launch of

new venues.

NEARLY

50%

in the number of dark pools by the end of 2015 is predicted by

the US buy side. On average, respondents believe there

will only be 30 by the start of 2016.

33% DECREASE

of the US firms surveyed had confidence in the SECs ability to make decisions that will positively impact market structure.

Meanwhile,

4% of the firms in EMEA had confidence in MiFID II

of respondents globally agree that the quality of algos has improved over the last two years.

61%A

METHODOLOGY

Liquidnets Institutional Voice Survey was developed to gauge insights and market sentiment of institutional traders working for the worlds leading mutual, pension and hedge funds. The results from this years survey are based on more than 115 responses from Liquidnets network of leading asset management firms based in North America, Europe and the Asia-Pacific region. Participants were polled during a five week period ending January 12, 2015.

ON A DIFFERENT SCALENEW YORK LONDON HONG KONG SINGAPORE SYDNEY TOKYO TORONTO

2015 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Conduct Authority in the UK, is licensed by the Finan-cial Services Board in South Africa, and is a member of the London Stock Exchange and a remote member of the Warsaw Stock Exchange, and SIX Swiss Exchange and a member and block agent of Xetra MidPoint order book. Liquidnet Canada Inc. is a member of IIROC and a member of the Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and a provider of automated trading services pursuant to the Securities and Futures Ordinance and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the Australian Securities and Investment Commission as an Australian Financial Services Licensee, AFSL number 312525, and is registered with the New Zealand Financial Markets Authority as a Financial Service Provider, FSP number FSP3781.