NYFIX, Inc. (NASDAQ: NYFX) and the Archipelago Exchange (ArcaEx) today announced a joint innovation in order management functionality enabling NYFIX Millennium clients to submit pegged orders that will be represented in both NYFIX Millennium and ArcaEx simultaneously. This new order type offered by NYFIX Millennium will operate under the pseudonym of "Millennium Shadow Order". Shadow Order functionality will enable NYFIX Millennium users to enter pegged orders with a portion of the order sent to ArcaEx and displayed in the National Market System (NMS) while the remainder of the order will be matched conventionally in NYFIX Millennium.
The Shadow Order will allow NYFIX Millennium users to specify what percentage of their order is sent to ArcaEx for public display (with pre-authorized reserve quantities) while the remainder of the order rests in NYFIX Millennium. As orders are executed in the NMS through ArcaEx, an additional quantity will be sent to ArcaEx replenishing the executed quantity. If the order is executed in NYFIX Millennium, no further quantity is sent to ArcaEx. This unique combination enables users to leverage the liquidity in NYFIX Millennium without sacrificing access to the public quote. The order will remain anonymous in both systems
"The ability for NYFIX Millennium clients to be represented in two markets at the same time, is the first offering of its kind in the listed ATS space. Millennium's unique order management capabilities give us the ability to offer clients an efficient shorthand mechanism for accessing liquidity in two dynamic listed equity liquidity pools," commented Robert Gasser, Chief Executive Officer of NYFIX Millennium, L.L.C. "We believe shadow orders give our clients the ability to compete with the NYSE Specialist on an equal footing in the NMS with the added benefit of matching within the NYFIX Millennium network."
Mike Cormack, president of Archipelago noted, "Since NYFIX Millennium does not display any quotes, posting pegged orders on ArcaEx gives Millennium users the best of both worlds, anonymous access to liquidity in Listed names through NYFIX Millennium's conditional orders and representation in the public quote through ArcaEx."