The operation of private share trading platforms is a fierce business. Last month, global dark pool operator Liquidnet revealed it was launching a private market after hiring Louis Kerner and Michael Silverstein from rival US broker Wedbush Securities.
Wedbush has since filed a lawsuit against Liquidnet, alleging that the former employees took proprietary information with them. Liquidnet said: “In the action brought by Wedbush Securities, the court denied the temporary restraining order requested by Wedbush. Liquidnet is pleased with this initial ruling and we look forward to continuing our work with Kerner and Silverstein to grow our private shares business.”
Liquidnet hired the duo from Wedbush to launch a private shares business. Until now, it has only traded large blocks of shares that are listed on an exchange where the average trade size is very small.