Investment Technology Group (ITG), a leading agency broker and financial technology firm, today launched Posit Marketplace for Australian equity trading.
The first of its kind in Australia, POSIT Marketplace links institutional liquidity from POSIT, ITG's world-leading crossing network, with liquidity from some of the largest broker pools and alternative trading venues in the market. It provides a way for institutional traders to trade more efficiently, cheaply and simply, and is particularly useful as the Australian trading landscape becomes more fragmented.
By uniting liquidity from multiple sources, POSIT Marketplace is designed to reduce the costs of trading and improve efficiency for fund managers and institutional firms. It does so by addressing the three largest cost factors: spreads, market impact and delay costs.1
Commenting on the launch, Michael Corcoran, ITG's Head of Sales and Trading, Asia Pacific said: "Fund managers should be aware that trading costs can make millions of dollars of difference to fund performance and that new tools are available to help manage these costs. As best execution - trading as efficiently as possible - becomes a focus for Australian regulators, fund managers and investors, tools such as POSIT Marketplace will be a vital component of Australian market evolution."
POSIT Marketplace is already available in global markets across the Americas, Europe and Asia. Since its launch in Hong Kong in March this year, the aggregator has delivered an average of 10 basis points saving on each trade crossed.
Corcoran adds: "The Australian trading landscape is undergoing a period of significant change. As new trading venues are introduced, a way to reach them all simply and efficiently needs to develop in parallel. POSIT Marketplace has built a strong global track record of reducing costs and helping institutional traders unite liquidity as markets become more complex. This is important as the Australian market changes, and should ultimately bring benefits to Australian fund managers and the investors whose money they're managing."