ITG (NYSE:ITG), a leading independent broker and financial technology provider, today announced the launch of PowerMatch and PowerScore, new features on ITG's block crossing network, POSIT Alert.
PowerMatch is the exclusive pairing of POSIT Alert participants who are highly ranked according to their trading behavior. The feature rewards POSIT Alert's highest-performing users with notification of larger trading opportunities. All POSIT Alert participants are given a PowerScore from 0 to 100, representing an average of several block crossing participation factors, weighted to reflect relative importance. The highest scores are given to traders who contribute liquidity to the pool, respond quickly, firm up an order, and firm up in size. Traders with PowerScores of 75 or higher are eligible for PowerMatch.
"PowerMatch ensures quality on both sides of a trade. It also increases the likelihood of executing a sizable block, because the minimum order suggestion will be at least three times the size of the usual POSIT Alert thresholds," said Andrew Larkin, Managing Director in charge of POSIT Alert coverage at ITG. "PowerMatch rewards our best, most active block traders, and PowerScores provide the guidepost for quality trading."
PowerScores are relative and recalculated daily to give extra weight to recent interactions. Trading interactions in the US, Canada, and Latin America factor into a user's PowerScore. PowerMatch eligibility enables clients who contribute positive interactions on the platform to gain access to more block crossing opportunities. PowerMatch helps drive improvements in trader behavior and execution quality, benefitting all participants through improved firm-up rates and overall liquidity.
ITG also announced today that it has revised the trading thresholds and minimum order sizes in POSIT Alert in the US to make the levels more relevant and flexible and provide a broader range of block crossing opportunities. Under the new parameters, the block threshold will be the lower of 5% of ADV, $1 million notional or 20,000 shares, determined on a security-by-security basis, while the minimum order sizes will be half of those threshold levels.
Commenting on the new order size parameters and the rollout of PowerMatch and PowerScores, ITG's Head of Electronic Brokerage, Jamie Selway, said "In a world of scarce block liquidity, POSIT Alert is a core client asset. These investments will quantitatively measure and incentivize quality behavior, improving the POSIT Alert community for all.