LiquidityBook, a leading Software-as-a-Service (SaaS)-based provider of buy- and sell-side trading solutions, today announced its business soared to new heights in 2020, exceeding internal goals on revenue growth, client wins and staffing amid daunting circumstances. This strong performance was fueled 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.

Five of the key highlights from the year were as follows:

• LiquidityBook’s total revenues for 2020 were up 34% 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%.
   
• 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% 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 memorialization 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 organization, increasing employee headcount by 37%. 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.

Commenting on the conclusion of another successful year, Chief Revenue Officer Sean Sullivan said: “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 maximize efficiency regardless of market conditions or physical location.”

The LiquidityBook platform delivers significant benefits in the following areas:

• Cost: LBX is a fully SaaS-based product, delivered 100% via the cloud leveraging AWS’s global footprint and architecture, which is the most reliable and secure in the industry. That means there is far less need to pay third-parties for hosting, connectivity, trading and position data back-up or business continuity planning services. The platform provides full redundancy and accessibility anywhere in the world; users simply need a browser and connectivity to trade.
• Stability and Service: LBX is an OMS/PMS/FIX order routing platform built on a single code base. Every client runs the same version, and updates are rolled out weekly. The platform is not an amalgamation of different stitched-together products; it was developed only a few years ago, making it far more reliable than competitive offerings.
• Functionality: The fact that the product is one integrated platform has significant usability benefits. For instance, the GUI is incredibly flexible, allowing users to create custom columns and calculations on the fly.
• Business Model: Since LiquidityBook provides its products on a SaaS basis, the firm can offer them at a very competitive price point while still being able to fully fund development, growth and product enhancements. The firm is not and has never been dependent on transactional fees to drive revenue growth. Not only do those cut into broker commission wallet commitments that many buy side are struggling to reach, this model is also potentially considered an inducement under MiFID II unless the vendor also provides connectivity.