Schwab to Launch Passive Indication Network for institutions.
Schwab Soundview Capital Markets (SSCM) is testing a new, continuous matching network for institutional investors seeking maximum market liquidity with minimal market impact. Rollout of its new Passive Indication Network is expected in late April.
SSCM clients can place indications for equity trades on the Passive Indication Network and remain anonymous as their indications are automatically matched against retail and institutional flow. Using customizable trade criteria, clients can attain a high degree of control over their indications, says SSCM.
Because all indications are exposed to the Schwab Liquidity Network with over 100 million shares of daily retail and institutional order-flow, stock trades can be executed with minimal market impact.
"The addition of the Passive Indication Network marks another significant step forward as we continue to expand the breadth and depth of the Schwab Liquidity Network and our presence within the institutional equity-trading community," states Larry Leibowitz, executive vice president, co-head of SCM, in a release.
According to the firm, indications are not displayed to exchanges, electronic trading networks, SuperMontage or SSCM trading staff.