Liquidnet Enters US Equity Options Market

Agency broker Liquidnet is expanding its reach into the U.S. equity options market, a move that broadens its multi-asset execution offering and reflects growing institutional demand for seamless trading across asset classes.

The firm has appointed two industry veterans to spearhead the initiative: Andrew Arnold, joining as Senior Execution Trader for high-touch options, and Jason Lichten, who will lead low-touch electronic options trading. Arnold brings over 20 years of experience in derivatives at institutions including Credit Suisse and Cantor Fitzgerald, while Lichten has worked at Wolverine Execution Services, RBC Capital Markets, and Merrill Lynch.

Chris Blackburn, Liquidnet's Global Head of Multi-Asset, said the expansion builds on the firm's client-driven strategy. "Expanding into U.S. equity options is a logical next step in our multi-asset strategy," he said. "The market has seen sustained growth over the past several years, and we see clear opportunities to deliver value to our Members by extending our execution expertise into this space."

The timing appears favorable. Options trading volumes in the U.S. have surged over the past three years amid record volatility, institutional hedging, and the rise of short-dated contracts. By adding options capabilities, Liquidnet seeks to create a unified trading environment where clients can execute across equities, bonds, and derivatives within a single infrastructure.

Arnold described the new venture as "a rare opportunity to build something new within an established global network," while Lichten noted that ongoing electronification presents "real opportunities for innovation."

Founded in 1999, Liquidnet was among the pioneers of institutional block trading through dark-pool networks. Its acquisition by TP ICAP in 2021 accelerated its push into electronic markets and data services. The addition of U.S. options complements earlier expansions into fixed income and listed derivati ves.

Still, competition will be intense. Major banks and electronic brokers dominate institutional options execution, armed with advanced algorithms and low-latency systems. Liquidnet's advantage lies in its agency-only model, which avoids proprietary trading and appeals to clients seeking transparent, conflict-free execution.

The company is also working to strengthen its internal controls following a $5 million fine from the U.S. Securities and Exchange Commission earlier this year related to supervisory lapses. It has since hired external consultants to enhance oversight and compliance systems.

If successful, the options expansion could cement Liquidnet's role as a cross-asset execution hub for institutional investors, connecting global liquidity across multiple markets under one platform.