ITG launches continuous pre-market open crossing session
Investment Technology Group (NYSE: ITG), a leading provider of technology-based trading services and transaction research, today announced the launch of its first continuous pre-market open crossing session.
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The initial crossing session, POSIT VWAP, will utilize the volume weighted average price (VWAP) benchmark. POSIT VWAP allows clients to easily and anonymously cross single names or lists of names at the end-of-day VWAP price before the market opens.
The crossing session will run continuously between 8:00 AM and 9:27 AM EST. Participants' orders match during the morning pre-open session, and then receive the full day's VWAP price at approximately 4:10pm EST. POSIT VWAP is accessible through Triton, Radical, ITG Channel, Macgregor XIP, or any FIX connection.
"The introduction of a continuous pre-open crossing session represents the continued evolution of ITG's POSIT crossing suite," said Chris Heckman, Managing Director at ITG. "POSIT VWAP is ITG's first benchmark-based continuous crossing session and is geared toward providing our clients with more efficient pre-open matching opportunities."
POSIT VWAP is currently available to all ITG clients. The VWAP benchmark is commonly used by traders to execute an order or portfolio. It is calculated by determining the ratio of value traded to the total volume traded over the course of the day. It is a favored execution benchmark for many institutional investors who are seeking to minimize market impact and execution costs while avoiding the risks of point in time execution.