LiquidityBook, a software-as-a-service (SaaS)-based provider of buy- and sell-side trading solutions, has reported record. revenues in 2020, despite the coronavirus pandemic.
This company’s strong performance was fuelled by a continued rise for its industry-leading POEMS (portfolio, order and execution management system) platform, which provides significant cost, management and functionality benefits over legacy platforms.
While investment managers have long been drawn to LiquidityBook due to these efficiencies, conditions brought about by the Covid-19 pandemic infused many with a new sense of urgency. This dynamic is reflected in the numbers, as LiquidityBook surpassed its sales goals for the year, which were set before the pandemic, early in Q4.
LiquidityBook’s total revenues for 2020 were up 34 per cent year-over-year, fueled by steady client wins for each of the firm’s products: LBX Buy-Side, LBX Sell-Side and LBX Outsourced Trader. Among the new clients is global investment holding company Duet Group, a collaboration that resulted in a number of new and enhanced offerings within the LBX suite. These include a cohesive security master able to map disparate security descriptions and back-end changes to allow for more seamless file delivery to counterparties and settlement systems. Both functionalities are now available to the firm’s wider client base. The firm’s overall client base grew by just over 20 per cent.
LiquidityBook expanded its proprietary managed global FIX network, adding 30 new broker-dealer partners now certified for equities, options, futures, FX and derivatives. This brings the total number to 180 unique managed FIX connections worldwide, a 38 per cent increase from 2019. Other enhancements expanded into the credit space, with collaborations with IHS Markit, MarketAxess, Tradeweb and VCON for both listed and OTC credit instruments and trading. LiquidityBook’s open-source security master seamlessly integrated these destinations with the OMS for proper tracking, trade memorialisation and settlement, with connectivity to over 130 third-party admins, custodians, PMS systems, prime brokers and data warehouse providers.
LiquidityBook added to its global development and client service organisation, increasing employee headcount by 37 per cent. This highly successful staffing push was a response to strong growth and surging client demand. Notably, the firm hired Chris Junge as Vice President of Customer Success and Cash Lafferty as Head of Business Development – West Coast.
LiquidityBook continued to expand its global footprint, signing its first locally domiciled clients in Hong Kong and Sydney. The firm continues to scale its business development and staffing efforts in the Asia-Pacific region in response to regional demand for robust, flexible trading technology solutions along with local service and support.
LiquidityBook launched a standalone CAT reporting solution, available to existing clients as well as new clients whose current or previous system could no longer support the new reporting requirements.
Chief Revenue Officer Sean Sullivan says: “March and April were very challenging months, and there was a period in which the industry was holding its collective breath as it waited to see what the future would look like. That said, as our prospective clients settled into the new world of remote work, many found that their legacy systems were inadequate and needed to quickly pivot to a new solution without missing a beat. We were proud to be able to step in and serve so many managers at a time of stress and high-stakes transactions.
“2020 was a turbulent year and there will be more turmoil to come, but one positive result is the increased understanding of how SaaS-based technologies are a true game changer in terms of cost, functionality and service. As the industry recalibrates its approach to technology and ponders the future of work, we stand ready to provide tools designed to maximise efficiency regardless of market conditions or physical location.”
