Instinet, the global electronic trading and agency only brokerage service group, has announced the launch of Instinet Canada Cross (ICX), an IIROC registered non-displayed alternative trading system (ATS) for TSX-listed securities.
ICX comprises two separate block focused dark pools, VWAP (Volume Weighted Average Price) cross and BLX, both of which are based on proven models and powered by Instinets exchange-caliber matching technology designed to maximize speed, performance and reliability.
The original purpose of dark pools was very simple: to allow institutions to trade in size without moving the market, says Peter Coffey, Managing Director at Instinet Canada Cross. While the Canadian equity markets recent evolution has by and large been a positive, it has come at the expense of block trading. With ICX, were looking to bring back the Canadian block by providing our clients with the high-quality liquidity thats become so difficult to find.
ICX VWAP Cross and BLX become the latest additions to Instinets global alternative liquidity offering. Instinet has long been considered a pioneer in the alternative liquidity space, launching the worlds first major electronic trading venue in 1969, the industrys first securities crossing platform in 1986 and the first pan-European MTF in 2007.
Matches are locked in at the match time, with executions priced and printed after the market close once the stocks volume weighted average price has been determined using the days consolidated market data feeds from all visible Canadian markets.
The VWAP cross supports market orders, minimum fills and cash constraints on baskets.
ICX BLX is an algo-friendly dark pool that seeks to build block trades by accumulating orders until a variable volume threshold is reached. BLX was designed specifically to increase trade size by appealing to an array of trading participants, including both passive block traders and those using algorithmic trading strategies.
The BLX model also includes several built-in anti-gaming features, such as volume triggers and a mid-point pricing window, to prevent the system from being pinged by information seeking traders.
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