Washington-based Securities Technology Firm Launches Internal Crossing Engine

Headstrong, Inc., a Washington based technology provider for the securities sector, unveiled its new service that allows buy side and sell side institutions to measure the potential savings from using an internal crossing engine. "Disparate order routing systems have created

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Headstrong, Inc., a Washington-based technology provider for the securities sector, unveiled its new service that allows buy-side and sell-side institutions to measure the potential savings from using an internal crossing engine.

“Disparate order routing systems have created a fragmented, inefficient market,” claimed Greg Johnston, director of Headstrong Financial Products. “As a result, firms are embracing the internal marketplace to consolidate and extract additional value from order flow.”

Johnston added that the service, named STRIDE CROSS Analysis, is the only service available that identifies opportunities and calculates the resultant cost savings from crossing order flow internally. It provides tangible justification for firms considering internal crossing as a means to lower execution costs and the implicit and explicit costs of trading.”

The software uses the STRIDE Crossing Engine and historical order, trade and market data, to simulate an internal crossing environment. It is meant to identify the number of shares a firm can cross naturally and assesses the potential crossing rate of order flow coming from each trading group (“silo”) in order to determine the optimal interaction among order flow silos.

It is also meant to determine the potential price-improvement for each internally crossed order.

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