Nasdaq announced on August 11 that it is set to acquire LeveL Markets, the third-largest U.S. alternative trading system by volume, in a move that will bring one of the country’s largest off-exchange equity venues into its newly formed Digital Liquidity Networks organization. Roland Chai, Head of Nasdaq’s Digital Liquidity Networks, spoke with Traders Magazine about what LeveL Markets adds to Nasdaq’s liquidity capabilities and the factors behind the ATS’s growth.
What does acquiring LeveL Markets add to Nasdaq’s existing equities trading and liquidity capabilities, and where do you see the biggest opportunities for growth?
One of the most durable trends shaping capital markets is the move toward markets that are more continuous, connected, and digital. Investors increasingly want the ability to access liquidity across venues, time zones, and market models, and we believe that trend will continue for years to come. As markets evolve, the need for trusted infrastructure that can connect participants, support innovation, and operate within established regulatory frameworks will only become more important.
LeveL Markets brings a scaled, institutionally connected execution platform that significantly expands the range of liquidity solutions Nasdaq can offer our clients.
LeveL Markets has grown to become the third-largest U.S. ATS by volume. What factors have driven that growth, and how does Nasdaq plan to accelerate it following the acquisition?
LeveL Markets’ growth has been built on a strong foundation: a scaled ATS execution platform with deep connectivity to the buy-side and sell-side, capable of processing hundreds of millions of shares a day for more than 2,500 participants. That combination of scale, institutional connectivity, and execution quality is what has made it one of the leading off-exchange equity execution venues in the U.S. Following the close of the transaction, we look forward to investing in LeveL Markets’ technology, client offering, and long-term growth.
How will LeveL Markets’ execution platform fit within Nasdaq’s Digital Liquidity Networks strategy, particularly as traditional and digital market infrastructure increasingly converge?
Our vision of the future of markets is where digital assets interact seamlessly with traditional financial markets and capital moves with velocity and certainty.
Digital Liquidity Networks builds on Nasdaq’s longstanding investments in digital assets and market modernization. We believe tokenized instruments, digital assets, and new liquidity networks are part of a broader evolution in how capital is formed, invested, and traded. As that evolution continues, clients will need trusted infrastructure that can connect liquidity across market models while maintaining the transparency, resilience, and integrity that underpin modern markets.
DLN brings together Nasdaq’s liquidity venues, tokenization capabilities, and technology solutions that support the digital assets ecosystem across the full trade lifecycle. LeveL Markets will operate within DLN following the close and serve as an important component of that strategy.
Nasdaq says LeveL Markets will maintain structural separateness and participant confidentiality. How will that separation work in practice once the venue is part of Nasdaq?
Following the close of the transaction, LeveL Markets will continue to operate as a trading venue with its own dedicated management team within Digital Liquidity Networks. It will remain a registered ATS subject to FINRA oversight.
In practice, that means preserving the very qualities that make LeveL Markets trusted by institutional participants – its independence of operation, the confidentiality of its participants, and its regulatory standing – while giving it access to Nasdaq’s broader resources and the DLN organization. Our focus is maintaining our regulatory obligations and our clients’ trust.
What new liquidity or execution models could the combined business develop across equities and digital assets, and how might those opportunities change the way institutional clients trade?
LeveL Markets has built an impressive franchise with deep institutional connectivity, strong execution quality, and trusted client relationships, and we see significant opportunity to build on that foundation as part of Digital Liquidity Networks. Our focus is on completing the transaction, and after close, continuing to operate a strong and successful ATS.
As we have discussed, bringing LeveL Markets into DLN helps us explore new ways of connecting liquidity and supporting client needs as market structure evolves. Our goal is to ensure that as those opportunities emerge, clients can access them through infrastructure that reflects the same standards of trust, transparency, and resilience that have long defined Nasdaq.
What investments in LeveL Markets’ technology, connectivity and client offering do you expect to prioritize after closing, and what should clients expect to see change in the near term?
Our immediate focus is on completing the transaction and ensuring clients continue to receive the high-quality service and execution they expect from LeveL Markets. Clients should expect operations to run business as usual. Looking ahead, our approach will continue to be guided by our clients and their evolving needs. Our priorities will be driven by where we can create the most value for clients.
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