Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology based equity trading services and transaction research, today announced that beginning June 8, 2005, it will commence offshore operation of the POSIT crossing system for the matching of Japanese securities.
POSIT, the world's largest equity crossing system, matches institutional buyers and sellers anonymously and provides patented optimization capabilities for portfolio traders to manage portfolio risk characteristics. Trades cross at the midpoint of the bid/offer spread, resulting in substantial cost savings to customers. POSIT's confidentiality eliminates the unfavorable market impact that can result from trading in an open arena, which is often cited as the single largest factor in transaction costs.
"The matching of Japanese securities is a key component in our global expansion initiative and will allow ITG to further meet the international trading requirements of its customers," stated Ray Killian, ITG's Chairman, President, and CEO. "Our customers are very optimistic about the availability of POSIT for the Japanese market because it is a system they know and trust."
Initially, there will be two daily matches. The first match, at 8:15 AM (Tokyo time) will be a pre-open Volume Weighted Average Price (VWAP) based on Bloomberg's VWAP for the current day. The second match will be held during the morning trading session at 10:00 AM, and will cross securities at the mid-point of the bid/offer spread.
Customers will be able to submit POSIT orders through the Bloomberg system, FIX protocol links, and any ITG Trading Desk.
POSIT is an alternative trading system owned and operated by subsidiaries of Investment Technology Group, Inc. With the addition of Japan, securities from nineteen countries will be available for matching using POSIT technology.