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ITG's POSIT Match Takes Aim at Fragmentation, Liquidity

The firm says its latest offering looks to solve the problem of temporal fragmentation and expensive liquidity at an important time in the trading day.

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.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio

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