ITG has introduced a new version of its electronic crossing network, POSIT Now, to Europe. The aim is to provide users with access to so-called “dark liquidity,” or liquidity that is not displayed on order books.
“POSIT Now is a natural extension of our crossing business and has been launched expressly in response to client demand,” says Alasdair Haynes, Chief Executive of ITG in Europe.”Our clients know that crossing gives them valuable access to liquidity and helps them reduce transaction cost. In other words they maximise their opportunities to execute business while at the same time minimising risk. POSIT is really an obvious first port of call for traders. Looking ahead, we also expect POSIT to benefit from the implementation of MiFID and its requirement for market participants to investigate all sources of liquidity to ensure Best Execution. I am certain that POSIT Now will soon establish itself as an important source of dark liquidity that can’t be ignored.”
ITG claims that the anonymity and confidentiality of the system ensure that there is no leakage of information into the market and therefore price impact is minimised. Also, says ITG, orders are crossed at the midpoint price of the underlying market, offering a 50% saving on the bid/offer spread.
POSIT Now complement ITG’s existing crossing system, POSIT Match, which offers users a concentrated pool of liquidity in which to match buy and sell orders. POSIT Match crosses equities at specific times – in Europe, this means eight times a day within normal market hours.
The POSIT universe in Europe, which consists of 9,000 stocks from 15 countries, can be accessed via ITG interfaces such as its Triton execution management system and Channel ITG, but also via FIX, Bloomberg and directly from users’ own order management systems.
POSIT has been running in Europe since 1998 and in the US. since 1987. It also offers anonymity and midpoint pricing. The benefits of anonymity are maintained throughout the clearing and settlement process as a result of ITG’s agency status. Both versions of POSIT will be available to institutional investors on the buy and sell side.