Investment Technology Group has teamed up with Electronic Specialist (ESP) to provide greater flexibility in anonymous crossing and algorithmic trading.
ITG, a pioneer of automated trading intelligence and a leading provider of technology-based equity trading and transaction research services to institutional investors, has integrated its SmartServer algorithms and its POSIT and TriAct crossing networks with ESP's Global Direct Market Access (DMA) and Electronic Algorithm Routing Network (EARN). ITG's SmartServer algorithms allow sophisticated trading strategies to be executed electronically. POSIT and TriAct anonymously match equity buy and sell orders automatically.
"Now clients across ESP's network can access ITG's algorithms and crossing networks through any of the 20 integrated trading applications that we support," said Scott Kurland, senior managing director of ESP. "We believe that the addition of ITG's USD 18.4 billion in average daily institutional match liquidity through POSIT and TriAct, collectively, will provide an extremely valuable source of liquidity for clients on our DMA Network."
ITG's SmartServers provide a set of electronic trading algorithms designed to meet multiple benchmarks and automate trading tactics, saving traders time and giving them greater control. POSIT, the world's largest equity crossing system, matches institutional buyers and sellers anonymously and provides patented optimization capabilities for traders to manage portfolio risk characteristics. TriAct offers anonymous, continuous equity crossing with opportunities for price and size improvement. All orders filled in POSIT and TriAct are executed between the bid and ask spread, which equates to cost savings to ITG's customers.
"In this era of heightened market scrutiny and transparency, customers are increasingly demanding broker-neutral solutions," said Tony Huck, managing director of Sales and Trading at ITG. "Connecting to ESP demonstrates ITG's commitment to provide more flexible access to our algorithmic servers and our cornerstone POSIT crossing network."
Additionally, the integration of the two networks will broaden the customer base of both ITG and ESP.
Of particular benefit to the investment community, the teaming of ITG with ESP will now allow clients to aggregate their ITG trade executions submitted through ESP's DMA or EARN Portal with ESP's other DMA and algorithmic trading executions as a single or allocated block trade. ESP provides centralized clearing, settlement and delivery across all market destinations. ESP's EARN Portal currently offers clients anonymous, centralized access to more than 40 algorithmic strategies from some of the leading providers of financial services.
Background notes: ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, Hong Kong, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology-based equity trading services and transaction research to institutional investors and brokers, ITG helps clients to access liquidity, execute trades more efficiently and make better trading decisions.
ITG aims to generate superior trading results for its clients through three lines of business. POSIT(R), the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading-edge Client- Site Trading Products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity.
Electronic Specialist, LLC (ESP) is a New York-based technology firm and registered broker-dealer and NASD member. ESP provides high-speed direct market access execution capabilities in US and global equities, options, and futures to buy and sell-side clients. ESP's client base includes hedge funds, pension plans, investment advisors, boutique broker-dealers and traditional asset managers. There are over 20 trading application providers integrated with ESP's Global DMA network.