Credit Suisse and Lehman Brothers announced the successful linkage of their respective dark pools in the U.S. - AES CrossFinder and Lehman Brothers' LXSM.
In July, Lehman Brothers' LXSM and AES CrossFinder collectively achieved record daily volume above 300 million shares, representing over 20% of the total dark pool volume executed in U.S. Equities according to research by the Tabb Group.
"We're excited by the liquidity this deal has added," said Dan Mathisson, Managing Director and Head of Credit Suisse's Advanced Execution Services (AES). "AES clients have directly benefited from access to LX, and our CrossFinder ATS liquidity has improved thanks to the order flow from Lehman Brothers. This partnership is a win-win for clients of both firms."
The linkage of two leading non-displayed pools of liquidity helps to address the buyside's challenge to locate liquidity in a fragmented equity market. The relationship, which started one year ago between Credit Suisse and Lehman Brothers, leverages the respective firms' market leading global franchises and allows clients to interact with both Firm's best-in-class alternative trading systems.
"It is becoming ever more important for clients to incorporate all available pools of non-displayed liquidity into their workflow to achieve the best possible execution," said Frank Troise, Managing Director and Head of Electronic Trading Products at Lehman Brothers. "Linking Lehman Brothers' LXSM and AES CrossFinder has been incredibly successful in terms of delivering one of the largest pools of available liquidity to our respective clients."
Jointly, Lehman Brothers and Credit Suisse account for a significant percentage of total volume traded on NYSE and NASDAQ. Clients have access to both firms order flow via AES CrossFinder and Lehman Brothers' LXSM.
Lehman Brothers Electronic Trading Services provides clients with deep and unique liquidity access through its world-class suite of LMX Algorithmic Trading Strategies and direct posting to LX, available around the world. Credit Suisse's AES is an award winning leader in global multi-asset algorithmic trading available in 35 countries and CrossFinder can be accessed directly or through any AES strategy.