ITG (ITG), a leading execution and research broker, today announced the upcoming launch of POSIT Match, a new point-in-time match for U.S. equities.
POSIT Match will take place daily at 9:45 AM Eastern Time, starting on Friday, November 16.
POSIT Match is an innovative solution for institutional investors seeking quality block liquidity early in the trading day, when price formation is still underway and volatility and trading costs are generally higher. POSIT Match builds on the success of the ITG Dynamic Open algorithm, which empowers traders to tap the liquidity available in the NYSE and NASDAQ opening auctions while minimizing price impact from over-participation.
"Sometimes, we look to the past to solve the problems of the present," said Jamie Selway, ITG Managing Director and Head of Liquidity Management. "POSIT Match offers a solution to the problem of temporal fragmentation and expensive liquidity at an important time in the trading day."
POSIT Match also offers enhanced block trading opportunities for portfolio traders. Trading blocks in a list poses additional challenges given potential cash- and risk-management constraints. By offering portfolio constraints, POSIT Match enables list traders to cross offsetting positions conditionally in accordance with their risk and cash limits.
Commenting on the POSIT Match announcement, Nat Evarts, Head of Trading, Americas, at State Street Global Advisors, said, "POSIT Match is appealing because it centralizes crossing opportunities, thus making your order flow more manageable."
Rob McGrath, Global Head of Trading at Schroders Investment Management, added "ITG's efforts to consolidate liquidity and improve market quality for institutional traders are welcome and timely."