Instinet Incorporated, a global leader in electronic trading and agency-only brokerage services, today announced the launch of Instinet Canada Cross (ICX), an IIROC-registered non-displayed alternative trading system (ATS) for TSX-listed securities.
ICX comprises two separate block focused dark pools - VWAP (Volume Weighted Average Price) cross and BLX - both of which are based on proven models and powered by Instinet's exchange-caliber matching technology designed to maximize speed, performance and reliability.
Commenting on the introduction of ICX, Peter Coffey, Managing Director at Instinet Canada Cross Limited, said: "The original purpose of dark pools was very simple: to allow institutions to trade in size without moving the market. While the Canadian equity market's recent evolution has by and large been a positive, it has come at the expense of block trading. With ICX, we're looking to bring back the Canadian block by providing our clients with the high-quality liquidity that's become so difficult to find."
ICX' VWAP cross runs each day at 9:15 am ET. Matches are locked in at the match time, with executions priced and printed after the market close once the stock's volume weighted average price has been determined using the day's consolidated market data feeds from all visible Canadian markets. The VWAP cross supports market orders, minimum fills and cash constraints on baskets.
ICX' BLX is an algo-friendly dark pool that seeks to "build" block trades by accumulating orders until a variable volume threshold is reached. BLX was designed specifically to increase trade size by appealing to an array of trading participants, including both passive block traders and those using algorithmic trading strategies. The BLX model also includes several built-in anti-gaming features, such as volume triggers and a mid-point pricing window, to prevent the system from being "pinged" by information-seeking traders.
ICX' VWAP Cross and BLX become the latest additions to Instinet's global alternative liquidity offering. Instinet has long been considered a pioneer in the alternative liquidity space, launching the world's first major electronic trading venue in 1969, the industry's first securities crossing platform in 1986 and the first pan-European MTF in 2007.