Global securities firms Citigroup, Credit Suisse, Fidelity Brokerage Company, Lehman Brothers and Merrill Lynch have teamed up to launch an alternative trading system called LeveL.
LeveL is an order-matching engine which enables users to cross their own order flow as well as conduct contra-party trading.
The system is being launched by EBX, a joint venture established by the five investment banks.
The group says the system is designed to reduce member firms' operating costs by delivering reduced transaction and clearing costs, increased automation of orders and enhanced market access capabilities. LeveL also provides market routing capabilities that are an effective way to fulfill Reg NMS obligations.
Jose Marques, director, Credit Suisse, says: "LeveL delivers an advanced tool kit including an open API for integration with algorithm suites and other types of automated trading, new order types and improved market data information."
The platform is designed to provide enhanced execution quality, anonymity for order handling and execution, and liquidity, says Mark Haggerty, president, Fidelity Capital Markets Services.
"LeveL will benefit clients as well as the market with increased sources of order flow - both intra-firm and with external firms - as well as interaction with non-displayed liquidity. LeveL creates a mechanism for enhanced, innovative and flexible order types," he adds.
The LeveL platform will begin trading on 16 October 2006.