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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1. Name and Address of Reporting Person * CLOUGH PHILLIP A   2. Issuer Name and Ticker or Trading Symbol LIQUIDITY SERVICES INC [LQDT] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 400 EAST PRATT STREET, SUITE 910 3. Date of Earliest Transaction (Month/Day/Year) 02/01/2010 (Street) BALTIMORE, MD 21202-3116 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               1,326,690 (1) I See footnote (2) Common Stock               8,999 (3) D

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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	$ 12.89							(4)	04/03/2016	Common Stock	20,000		20,000	D
Employee Stock Option	$ 14.75							(5)	10/02/2016	Common Stock	9,393		9,393	D
Employee Stock Option	$ 11.19							(6)	10/01/2017	Common Stock	8,560		8,560	D
Restricted Shares	$ 11.66							(7)	06/03/2018	Common Stock	2,573		2,573	D
Employee Stock Option	$ 11.66							(8)	06/03/2018	Common Stock	15,082		15,082	D
Employee Stock Option	$ 8.55							(9)	04/28/2019	Common Stock	21,086		21,086	D
Employee Stock Option	$ 10.7	02/01/2010		A		18,612		(10)	02/01/2020	Common Stock	18,612	$ 0	18,612	D
Restricted Stock Grant	$ 10.7	02/01/2010		A		3,364		(11)	02/01/2020	Common Stock	3,364	$ 0	3,364	D
Restricted Stock Grant	$ 10.7	02/01/2010		A		2,804		(11)	02/01/2020	Common Stock	2,804	$ 0	2,804	D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
CLOUGH PHILLIP A 400 EAST PRATT STREET, SUITE 910 BALTIMORE, MD 21202-3116	X

Signatures

/s/ James E. Williams, by power of attorney		02/04/2010
**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)	Consists of the following shares held by the following entities: (a) 1,165,895 shares by ABS Capital Partners VI, LP ("ABS VI"), (b) 22,209 shares by ABS Capital Partners VI-A, LP ("ABS VI-A"), and (c) 138,586 shares by ABS Capital Partners VI Offshore, LP ("ABS Capital Partners VI Offshore," and together with ABS VI and ABS VI-A, the "ABS Entities"). ABS Partners VI, LLC is the general partner of the ABS Entities and has voting and dispositive powers over these shares. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(2)	Mr. Phillip Clough is a managing member of ABS Partners VI, LLC, the general partner of the ABS Entities. Mr. Clough disclaims beneficial ownership of these shares except to the extent of his pecuniary interest. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(3)	Includes 3,509 shares of restricted stock that vest on February 18, 2010.
(4)	These options became fully vested on April 3, 2008.
(5)	These options became fully vested on October 2, 2007.
(6)	These options became fully vested on October 1, 2008.
(7)	These restricted shares vested on April 29, 2009.
(8)	These options became fully vested on April 29, 2009.
(9)	100% of this option grant will vest on February 18, 2010.
(10)	These options have a one-year vesting period, such that 100% of this option grant will vest on February 1, 2011.
(11)	These restricted shares have a one-year vesting period, such that 100% of this restricted share grant will vest on February 1, 2011.

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