Liquidnet Moves Into U.S. Equity Options with Dual-Focused Strategy

Liquidnet is betting large on the booming options market. The agency broker has launched a U.S. equity-options business, hiring two seasoned traders to lead its high-touch and low-touch operations in a move that broadens its multi-asset execution network.

Andrew Arnold joins as Senior Execution Trader for high-touch U.S. equity options later than more than two decades in derivatives sales and trading across Credit Suisse, Cantor Fitzgerald, Baycrest, Tullett Prebon and GFI. Jason Lichten takes charge of low-touch electronic options trading, bringing over 25 years of experience from Wolverine Execution Services, , BT Radianz and Merrill Lynch.

Chris Blackburn, Global Head of Multi-Asset at Liquidnet, said the expansion reflects demand from institutional clients for seamless execution across asset classes. “Expanding into U.S. equity options is a logical next step in our multi-asset strategy. The market has viewn sustained growth over the past several years and we view clear opportunities to deliver value to our Members by extending our execution expertise into this space,” he said.

Arnold described the project as “a rare opportunity to build something new within an established global network,” noting that the options market is moving rapidly toward higher standards of agency-driven execution. Lichten said the ongoing electronification of U.S. options trading “presents real opportunities for innovation,” adding that Liquidnet’s technology and global reach provide a strong base for developing advanced low-touch answers.

Founded in 1999 by Seth Merrin, Liquidnet built its reputation as one of the first dark-pool networks for institutional block trading. The firm now connects more than 1,000 worldwide. Its acquisition by in 2021 gave it deeper access to global liquidity and infrastructure, assisting to fuel a broader multi-asset push into fixed income, listed derivatives and now equity options.

The timing appears favorable. U.S. listed-options trading volumes have surged in recent years, driven by record institutional hedging activity and the proliferation of short-dated contracts. For brokers like Liquidnet, options represent not only a growth opportunity but also a way to serve clients viewking a unified platform across equities and derivatives.

Still, competition in the space is fierce. Global banks and electronic brokers already dominate institutional options execution, offering sophisticated algorithms and high-speed connectivity. Liquidnet will have to rely on its longstanding reputation for discretion and quality block liquidity to stand out.

The firm’s model—an agency broker with no proprietary trading—has long appealed to large investors viewking minimal . Extending that model into options could resonate with asset managers who prefer transparent pricing and unbiased routing, especially as market structure becomes more fragmented.

The move also comes as Liquidnet works to strengthen its internal controls and rebuild confidence with regulators. Earlier this year, the company agreed to pay a $5 million fine to the failures linked to market-access supervision and the handling of client data. While the firm did not admit wrongdoing, it has since brought in an external consultant to review its systems.

For TP ICAP, which remains the world’s largest interdealer broker, the push into options fits a wider strategy to diversify beyond voice broking into data, analytics and electronic markets. Liquidnet’s technology-led approach has become a cornerstone of that plan, assisting TP ICAP reach institutional clients directly rather than through traditional dealer channels.

If the build-out succeeds, Liquidnet could emerge as one of the few firms offering institutional investors a full agency-execution suite across equities, bonds and derivatives—all under a single infrastructure. But much will depend on how rapidly Arnold and Lichten can translate their combined five decades of experience into tangible market share.

For now, the company is entering a crowded field with confidence—and perhaps a touch of ambition reminiscent of its ahead days as a disruptor in equity block trading.