Credit Suisse to launch US 'Light Pool'

Credit Suisse to launch US 'Light Pool'

Credit Suisse Securities is set to launch a US electronic communications network (ECN) called Light Pool that will target long term investors.

According to Bloomberg, the platform began testing with clients last month and is set to launch officially in March. Built on the same technology used by the bank's Crossfinder dark pool it will be aimed squarely at institutional investors such as mutual funds, hedge funds and pensions.

In a bid to attract these long term investors and keep out high-frequency trading speculators, Light Pool will put users into categories based on how they trade and set prices accordingly with some not allowed directly onto the venue.

These "opportunistic" traders will have to go through the National Stock Exchange, where Light Pool will publish its quotes, losing valuable microseconds.

Dan Mathisson, head of the firm's electronic trading unit told Bloomberg that it is deliberately forgoing the HFT community with the new venture to give long term investors a new kind of displayed market.

Credit Suisse Plans `Light Pool' Stock Market Aimed at Long-Term Investors - Bloomberg

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