Townsend Analytics, a leading provider of global multi-broker, cross- asset electronic trading solutions, is adding the Nyse MatchPoint network to its extensive choice of destination offerings through Townsend's RealTick EMS.
The direct connection enables RealTick's buy- and sell-side clients to match block and portfolio-based orders anonymously with one of the world's largest liquidity pools. Traders can execute single block trades or buy and sell within a basket and look for internal matches before that flow interacts with the rest of the liquidity pool. They can also specify minimum-share requirements for stocks and apply net cash constraints to portfolios to manage their risk.
As global markets become increasingly fragmented and visible liquidity shrinks, dark pools are gaining traction among institutions seeking anonymous block-trading opportunities with minimal market impact. According to analysts at the Tabb Group, order flow from crossing networks and dark venues now comprises 15% of buy-side trading flow - an annual rate increase of over 95% from 2004-2007.
A facility of the New York Stock Exchange (NYSE), NYSE MatchPoint is the world's first centralized, exchange-neutral, non-displayed matching system that trades all securities listed on the major and regional stock exchanges in the U.S. It matches aggregated orders at predetermined sessions throughout regular and after hours of the Exchange.
"RealTick is one of the world's leading broker-neutral trading platforms, so it's a great fit for our exchange-neutral trading model," notes James G. Ross, vice president, NYSE MatchPoint. "We expect RealTick's considerable user base will contribute a substantial amount of volume -- helping MatchPoint deliver our value proposition of deep block liquidity with minimal market impact."
"Many of our clients are finding it increasingly difficult to locate and quickly extract liquidity anonymously -- especially when they are looking to match portfolios," comments Stuart Breslow, CEO and CIO for Townsend Analytics. "By adding MatchPoint as a direct destination, we're giving them an excellent opportunity to match and to use RealTick's superior order execution capabilities to control the trade," he adds.