Execution and research broker ITG announced the launch of POSIT Match, a platform designed to help institutional investors find block liquidity early in the trading day when volatility and trading costs are generally high.
The firm said the POSIT Match system, which goes live when the market opens on Nov. 16, builds upon the ITG Dynamic Open algorithm. That algo helps traders tap liquidity available in opening auctions on the New York Stock Exchange and the Nasdaq, while minimizing price impact from over-participation.
"Sometimes we look to the past to solve the problems of the present," said Jamie Selway, ITG's managing director and head of liquidity management. "POSIT Match offers a solution to the problem of temporal fragmentation and expensive liquidity at an important time in the trading day."
ITG added that POSIT Match also offers enhanced block trading opportunities for portfolio traders. Trading blocks in a list poses additional challenges given potential cash-and risk management constraints, the firm said. But by offering portfolio constraints, ITG contends that POSIT Match enables traders to cross offsetting positions conditionally in accordance with their risk and cash limits.
"POST Match is appealing because it centralizes crossing opportunities, thus making your order flow more manageable," said Nat Evarts, head of trading for the Americas segment at State Street Global Advisors.
Rob McGrath, the global head of trading at Schroders Investment Management also lauded ITG's latest offering. "ITG's efforts to consolidate liquidity and improve market quality for institutional traders are welcome and timely," he said.