Liquidnet, the global institutional trading network, is making its Algo Ranking Model software (already launched in the US) available in Europe.

Using a multi-factor model, the Algo Ranking Model holistically profiles every order to rank execution strategies in real time according to order characteristics, trading objectives, market conditions, and performance targets. It is aimed squarely at institutions that have to obey the European Union's Markets in Financial Instruments Directive, as amended.

The model is based on three execution objectives: performance, fill rate and a combination of the two that occurs before it presents options to the trader, which might be an exchange-facing private bank. Once the trader has made a selection, the model quantifies the algorithm selection, creates an analytical foundation that supports best execution, and ultimately contributes to the creation of an audit trail for MiFID II compliance.

Liquidnet says that its software will allow trading firms to choose the right strategy according to the conditions of the stock and market at the time of execution. It sees MiFID II as just the beginning for its product.

Last month, Liquidnet acquired OTAS Technologies in London. It says that the combined software from the two firms will help the buy-side trader make better decisions and give him more control in his struggle to achieve 'best execution' - a MiFID II requirement.