What is the primary purpose of Liquidnet Canada Inc.?

What is the primary purpose of Liquidnet Canada Inc.?

• A. To enable anonymous trading between institutions
• B. To regulate agricultural derivatives
• C. To list securities for trading on an exchange
• D. To oversee compliance under the Commodity Futures Act

Answer: (A)

The primary purpose of Liquidnet Canada Inc. is to enable anonymous trading between institutions. This platform facilitates a trading environment where institutional investors can execute large orders without revealing their identities or their trading intentions to the market. This anonymity is particularly valuable in minimizing market impact and provides a level of privacy in their trading strategies, which can be crucial for managing large volumes of shares or securities.

Liquidnet's focus on institutional trading differentiates it from other functions such as regulatory oversight or the listing of securities, which fall under other entities or market infrastructures. The platform's design specifically caters to the needs of institutional participants, making it a key player in enhancing efficiency and liquidity while maintaining confidentiality in transactions.