Instinet, a provider of electronic trading and agency-only brokerage services, has launched Instinet Options CBX, a dark liquidity pool for US listed options.
The platform, which is currently live, has a base of liquidity providers and complements the agency-only broker’s existing options product offering.
“We are poised to apply our experience and insights in cash equity markets to US listed options markets as they continue evolving,” says Jonathan Kellner, president of the Americas at Instinet. “While there are key market microstructure differences between equities and options, the main contributor to providing best execution to our clients in any asset class lies in the seamless and stable interaction between the EMS, algorithms, smart routing, and crossing networks.”
Instinet Options CBX supports mid-point crosses and allows for sub-increment prints on exchanges where permitted.
The platform is targeted to clients trading all order sizes rather than those just looking to trade large blocks.
Instinet Options CBX will complement the firm’s existing suite of US liquidity pools, including Instinet’s CBX for equities, which in June 2010 was the US market’s largest agency-operated dark pool, according to Rosenblatt Securities.
Instinet Options CBX is currently available through direct FIX connectivity, as a destination in the firm’s front-end trading systems and through its liquidity seeking algorithms and smart order router. Additionally, it will soon be available via a range of third party providers.
