Academy Securities, a veteran-owned agency brokerage, has entered an agreement to execute orders through block trading venue Liquidnet. The broker has been selected as a “sponsored broker” on the buyside-to-buyside network.
In a sponsored broker arrangement, Liquidnet acts as a service provider to certain clients who select a sponsored broker — in this case it is Academy — for an order. If a trade is executed by Liquidnet, the venue is responsible for trade settlement with Academy and the West Coast broker is responsible for trade settlement with the end client.
This follows an arrangement the San Diego-based Disabled Veteran Business Enterprise and Service Disabled Veteran Owned Business made with BIDS Trading back about three weeks ago.
Atwell told Traders Magazine that Academy trades directly with Liquidnet’s trading desk, unlike its earlier arrangement with BIDS. The broker does not trade directly with the BIDS trading desk.
“Finding the natural contra and providing more liquidity has never been more important than now,” Atwell said. “This is all about what our clients need and this is something they have asked for.”
And Atwell is no stranger to how Liquidnet works, as he used the venue while he traded on buyside at Nicholas Investment Partners, American Express Asset Management and Nicholas Applegate Capital Management.
In the firm’s alliance with BIDS, signed in mid-January, Academy offers clients a way to pay their myriad obligations, such as research chits. The broker doesn’t trade directly with the venue’s trading desk.
Atwell added that Academy continues to look at new strategies and alliances to add value to its customers and broaden its business.
