Introduction

FINRA data is a widely used tool for measuring liquidity and volume executed off-exchange, especially volume traded in ATS venues. On October 3, 2016, FINRA began publishing monthly information on block-sized trades occurring on ATS venues to aid institutions with determining which venues are best for sourcing outsized liquidity.

The goal of Luminex was to create an innovative block trading solution for the buy-side community; and as our subscriber base continues to grow – approximately 160 subscribers versus 80 at launch date – so does our average trade size. Typically, as venues grow their subscriber base, average trade size tends to fall, largely due to variations in trading styles among participants. However, we have seen our average trade size continually rise across the largest trade size categories. Consistent growth in these categories, coupled with our proprietary metrics, show that Luminex is achieving what it set out to do and that block trading is alive and well when like-minded participants come together in the right environment.

Below are FINRA ATS block trading statistics for December 2016, including data highlighting the growth in the Luminex average trade size across the three main categories: 10,000 shares and above, $200,000 and above, and 10,000+ shares and $200,000+.

Finra OTC Volume Data

  • December Block Trading Statistics
  • Luminex Monthly Average Trade Size by Category
  • FINRA OTC Volume Overview

Block Trading Statistics – December 2016

Excluding Dealerweb, Luminex had the highest rank for ATS Average Trade Size in the following categories: 10,000 shares and above, $200,000 and above, and 10,000 shares and $200,000 combined (see below).

 

Luminex Monthly Average Trade Size by Category

FINRA OTC Volume Overview

  • FINRA began publishing data on the activity level of registered Alternative Trading Systems (ATS) in June 2014. ATS volume accounts for roughly 14% – 15% of total market volume.
  • On April 25, 2016, FINRA furthered its transparency effort and began publishing, by member firm and security, the remaining OTC equity volume executed away from ATSs, approximately 20% of total market volume.
  • On October 3, 2016, FINRA began publishing monthly information on block-sized trades occurring on ATS venues.

Data Source: https://otctransparency.finra.org/

Anna Ziotis Kurzrok
Marketing Strategy & Senior Sales
Luminex Trading & Analytics, LLC

For investment professional or institutional investor use only. Not authorized for distribution to the public as sales material. Luminex Trading & Analytics LLC Member FINRA, SIPC