Source: BIDS Trading
Penserra Securities, a New York-based agency broker for institutional investors, and BIDS Trading, the alternative trading system (ATS) designed to increase competition and liquidity in the U.S. equity block trading market, are pleased to announce an agreement that provides Penserra's clients with direct access to BIDS Trading's crossing system.
The arrangement establishes Penserra as the first government-certified Minority Business Enterprise (MBE) to offer sponsored institutional access to BIDS Trading.
Since its start, Penserra has offered its clients, which include several large U.S. pension systems, access to the firm's accomplished, trusted, single-stock and portfolio trading desks. Through its agreement with BIDS Trading, Penserra customers are now able to directly source block liquidity in the BIDS Trading ATS. This provides institutions with MBE targets a convenient way to boost their MBE use without forcing them to avoid direct-access options.
BIDS Trading, also based in New York, was founded in September 2006 by a consortium of twelve leading financial-services firms. Later this year, BIDS Trading and NYSE Euronext will launch a joint venture which will allow dark orders to interact with both displayed and reserve orders from the NYSE, in an attempt to improve execution quality and access to liquidity for block trading.
"We're very excited to be able to provide our clients with sponsored access to the non-displayed liquidity in BIDS Trading," said George Madrigal, managing director and co-founder of Penserra, and a 13-year veteran of Barclays Global Investors, where he served as a portfolio manager and head of transition management. "In addition to our brokerage experience, our management team has deep roots on the buy side, so we truly understand the value of direct access to a venue like BIDS Trading that allows for anonymous, block executions."
"The connection of Penserra to our block trading facility furthers our goal of creating the most efficient trading venue and deepest liquidity pool possible," said Tim Mahoney, CEO of BIDS Trading. "We are truly pleased to provide investors using Penserra with the ability to access BIDS Trading's open, flexible platform."
Volume on the BIDS Trading ATS has reached more than 5.89 billion shares* since its launch in 2007, with average daily volumes reaching 24.65 million shares* in July 2008.
*Figures are double-counted, to include both sides of the transaction