Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Rallo James M
  2. Issuer Name and Ticker or Trading Symbol
LIQUIDITY SERVICES INC [LQDT]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
President RSCG and CAG
(Last)
(First)
(Middle)
C/O LIQUIDITY SERVICES, INC., 6931 ARLINGTON ROAD, SUITE 200
3. Date of Earliest Transaction (Month/Day/Year)
04/02/2018
(Street)

BETHESDA, MD 20814
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 04/02/2018   J(1)   9,679 A $ 6.23 9,679 D  
Common Stock 04/02/2018   S(2)   9,679 D $ 6.23 0 D  
Common Stock               15,039 (3) I By James M. Rallo 401k
Common Stock               8,000 I By James M. Rallo IRA
Common Stock               685 I By James M. Rallo Cust. Michael Rallo MD UTMA (4)
Common Stock               460 I By James M. Rallo Cust. Melissa Rallo MD UTMA (4)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option $ 7.48               (5) 10/01/2018 Common Stock 2,338   2,338 D  
Employee Stock Option $ 15.47               (6) 10/01/2020 Common Stock 6,678   6,678 D  
Employee Stock Grant $ 15.47               (7) 10/01/2020 Common Stock 5,527   5,527 D  
Employee Stock Option $ 31.37               (8) 10/01/2021 Common Stock 12,358   12,358 D  
Employee Stock Option $ 38.09               (9) 10/01/2022 Common Stock 3,335   3,335 D  
Employee Stock Option $ 29.47               (10) 07/18/2023 Common Stock 24,871   24,871 D  
Employee Stock Option $ 21.99               (11) 10/01/2023 Common Stock 9,938   9,938 D  
Employee Stock Grant $ 10.41 04/02/2018   J(1)     7,716   (12) 10/01/2024 Common Stock 15,433 $ 6.23 7,717 D  
Employee Stock Option $ 10.41               (13) 10/01/2024 Common Stock 12,675   12,675 D  
Employee Stock Grant $ 6.63               (14) 10/01/2025 Common Stock 12,760   12,760 D  
Employee Stock Grant $ 5.8               (7) 10/01/2025 Common Stock 6,380   6,380 D  
Employee Stock Option $ 6.63               (15) 10/01/2025 Common Stock 13,987   13,987 D  
Employee Stock Option $ 6.63               (16) 10/01/2025 Common Stock 3,497   3,497 D  
Employee Stock Grant $ 8.3 04/02/2018   J(1)     1,963   (17) 10/01/2026 Common Stock 7,850 $ 6.23 5,887 D  
Employee Stock Grant $ 8.3               (7) 10/01/2026 Common Stock 7,850   7,850 D  
Employee Stock Option $ 8.3               (18) 10/01/2026 Common Stock 4,650   4,650 D  
Employee Stock Option $ 8.3               (16) 10/01/2026 Common Stock 4,650   4,650 D  
Employee Stock Option $ 4.47               (16) 10/01/2027 Common Stock 93,420   93,420 D  
Employee Stock Grant $ 4.47               (7) 10/01/2027 Common Stock 24,540   24,540 D  
Employee Stock Option $ 4.47               (19) 10/01/2027 Common Stock 62,280   62,280 D  
Employee Stock Grant $ 4.47               (20) 10/01/2027 Common Stock 16,360   16,360 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Rallo James M
C/O LIQUIDITY SERVICES, INC.
6931 ARLINGTON ROAD, SUITE 200
BETHESDA, MD 20814
      President RSCG and CAG  

Signatures

 /s/ Mark A. Shaffer, by power of attorney   04/03/2018
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Represents the vesting of restricted stock.
(2) Represents reporting person's advance election to sell upon vesting such restricted shares.
(3) The number of securities shown as being held in Issuer's 401(k) account for the Reporting Person's benefit is the approximate number of shares of common stock. De minimis fractional interests reported by the Issuer's 401(k) Plan trustee/administrator and held indirectly through the Plan's stock purchase account are not reflected.
(4) Mr. Rallo disclaims beneficial ownership of these shares.
(5) These options became fully vested on October 1, 2013.
(6) These options became fully vested on October 1, 2014.
(7) These restricted shares will vest, if at all, based on the Issuer's achievement of certain financial milestones.
(8) These options became fully vested on October 1, 2015.
(9) These options became fully vested on October 1, 2016.
(10) Twenty-five percent of this option grant vested on July 18, 2014 and thereafter 1/48th of the option grant will vest each month for thirty-six months.
(11) These options became fully vested on October 1, 2017.
(12) Twenty-five percent of this restricted stock grant vested on October 1, 2015 and thereafter 1/8th of the restricted stock grant will vest on April 1 and October 1 of each year for three years.
(13) Twenty-five percent of this option grant vested on October 1, 2015 and thereafter 1/48th of the option grant will vest each month for thirty-six months.
(14) Twenty-five percent of this restricted stock grant vested on October 1, 2016 and thereafter 1/4th of the restricted stock grant will vest on October 1 of each year for three years.
(15) Twenty-five percent of this option grant vested on October 1, 2016 and thereafter 1/48th of the option grant will vest each month for thirty-six months.
(16) This option becomes exercisable, if at all, based on the Issuer's achievement of certain financial milestones.
(17) Twenty-five percent of this restricted stock grant vested on April 1, 2018 and thereafter 1/4th of the restricted stock grant will vest on each of October 1, 2018, October 1, 2019, and October 1, 2020.
(18) 18/48th of this option grant vested on April 1, 2018 and thereafter 1/48th of this option grant will vest each month for thirty months.
(19) 15/48th of this option grant will vest on January 1, 2019 and thereafter 1/48th of the option grant will vest each month for thirty three months.
(20) Twenty-five percent of this restricted stock grant will vest on January 1, 2019 and thereafter 1/4th of the restricted stock grant will vest on each October 1, 2019, October 1, 2020, and October 1, 2021.

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