Investment Technology Group (ITG) has announced a technology collaboration with ESP. The aim is to help institutional investors to manage order flow, design their own trading strategies and minimize market impact by combining the use of matching engines, smart algorithms, ECNs & exchanges, through any one of 20 trading applications.
ITG – a pioneer of automated trading intelligence – has integrated its SmartServer algorithms and its POSIT and TriAct crossing networks with ESP’s Global Direct Market Access and Electronic Algorithm Routing Network. ITG’s SmartServer algorithms allow trading strategies to be executed electronically. POSIT and TriAct match equity buy and sell orders automatically and anonymously.
“Now clients across ESP’s network can access ITG’s algorithms and crossing networks through any of the 20 integrated trading applications that we support,” says Scott Kurland, senior managing director of ESP. “We believe that the addition of ITG’s $18.4 billion in average daily institutional match liquidity through POSIT and TriAct, collectively, will provide an extremely valuable source of liquidity for clients on our DMA Network.”
ITG’s SmartServers provide a set of electronic trading algorithms designed to meet multiple benchmarks and automate trading tactics. The company believes that this saves traders time, and gives them greater control. POSIT, an equity crossing system, matches institutional buyers and sellers anonymously and provides patented optimization capabilities for traders to manage portfolio risk characteristics. TriAct offers anonymous, continuous equity crossing with opportunities for price and size improvement. All orders filled in POSIT and TriAct are executed between the bid and ask spread, which equates to cost savings to ITG’s customers.
“In this era of heightened market scrutiny and transparency, customers are increasingly demanding broker-neutral solutions,” says Tony Huck, managing director of Sales and Trading at ITG. “Connecting to ESP demonstrates ITG’s commitment to provide more flexible access to our algorithmic servers and our cornerstone POSIT crossing network.” Additionally, the integration of the two networks will broaden the customer base of both ITG and ESP.
The two parties reckon the teaming of ITG with ESP will allow clients to aggregate their ITG trade executions submitted through ESP’s DMA or EARN Portal with ESP’s other DMA and algorithmic trading executions as a single or allocated block trade.
ESP provides centralized clearing, settlement and delivery across all market destinations. ESP’s EARN Portal currently offers clients anonymous, centralized access to more than 40 algorithmic strategies from some of the leading providers of financial services.
Electronic Specialist LLC (ESP) is a New York-based technology firm and registered broker-dealer and NASD member that provides high-speed direct market access execution capabilities in US and global equities, options, and futures to buy and sell-side clients. ESP’s client base includes hedge funds, pension plans, investment advisors, boutique broker-dealers and traditional asset managers. There are over 20 trading application providers integrated with ESP’s Global DMA network.