Lava introduces derivatives trading for buy-side

Lava Trading Inc., the innovative technology firm that develops high-performance trading solutions for the financial services industry, today announced it is now offering derivatives trading to its buy-side customers via the multi-broker LavaX platform.

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LavaX provides the buy-side with industry-leading functionality to effectively access hidden liquidity. Its features include NYSE OpenBook integration, ease of use improvements for initiating and modifying orders, and advanced algorithmic parameters and depth for account allocation. Eighteen sponsoring brokers are currently available through the LavaX system, along with eleven algorithmic trading routes and two introducing broker relationships.

LavaX now offers users market data and strategy-based order entry capabilities of Equity, Index and ETF Options, allowing for rapid and easy entry of single-legged and multi-legged orders, including buy-writes. Users can choose smart or self-directed routing to a specific exchange and are provided with a consolidated order book to easily manage their orders. The Options data, covering the complete U.S. domestic market, is provided by ComStock, an Interactive Data (NYSE: IDC) business and a leading provider of real-time global market data. Provision of Futures market data will be introduced later this year.

"We are very excited to offer expanded capabilities on LavaX to our clients," said Joel Steinmetz, Managing Director, Head of Execution Services Group, Lava Trading Inc. "This new offering is in response to growing customer demand and the increasing market need for derivatives trading capabilities. Providing the buy-side with industry-leading functionality is in keeping with our commitment to provide a full spectrum of high-performance and cutting-edge trading solutions to our customers."

With its fast, reliable and intelligent technology, LavaX saw a 60% increase in volume in the fourth quarter of 2005 vs. the previous quarter. Market share for LavaX doubled in 2005.

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