Credit Suisse has applied to register its internal crossing network as an alternative trading system in an effort to grow liquidity, boost transparency and bring in SEC oversight.
The Credit Suisse CrossFinder network is currently used internally to match up small blocks of bargains that have been transacted automatically from the bank's algorithmic trading flows. The network currently transacts about 30 million shares daily, on a par with independent third party operators such as Liquidnet.
The prospect that the network might be opened up to public inspection as an ATS was mooted publicly by Guy Cirillo, global channel manager for Advanced Execution Services at Credit Suisse, at a recent financial markets conference.
Such a move would save the firm large exchange fees on its proprietary book, he said, while boosting liquidity and creating opportunities for generating additional revenues from trade execution.
Similar initiatives are being pondered by investment banks worldwide as regulators introduce new transparency rules. Citibank recently moved to acquire e-trading network OnTrade from NexTrade Holdings, while Merrill Lynch last week bought Archipelago e-brokerage subsidiary Wave Securities.