Liquidnet Launches New Proprietary Algorithm, Dark IEX

Liquidnet Dark IEX is a proprietary algorithm, designed to grant wider access to buy-side clients aiming to utilize block liquidity

Liquidnet, the global institutional trading network, has launched Liquidnet Dark IEX, its newest order routing strategy for buy-side clients in tandem with the IEX, according to a Liquidnet statement.

Liquidnet Dark IEX helps provide the buy-side with heightened exposure to safe trading opportunities via access to its comprehensive institutional liquidity pool. Moreover, buy-side clients will be able to implement their orders within the IEX itself.

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IEX is a dark pool equity-trading entity, forged by a conglomerate of buy-side investors, namely mutual funds, hedge funds and family offices. The organization promotes transparency and fair access, having emerged out of the yolk of high frequency trading (HFT) and other regulatory quagmires in recent years.

Liquidnet Dark IEX is a proprietary algorithm, designed specifically to grant wider access to buy-side clients aiming to utilize block liquidity, who also wished to conduct large trading orders with minimized market impact.

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According to Scott Kartinen, Head of Algo Products at Liquidnet, in a recent statement on the algorithm, “We are always looking to provide our Members with better access and more control over their block orders. Traders can now work their orders safely and securely within both Liquidnet and IEX. This is one more way that we are providing the market with safe and efficient ways to trade.”

“For the buy-side looking to execute blocks, Liquidnet sets the standard in “upstairs trading” while we at IEX are proud of attracting large orders in the continuous market through our protective technology. This new routing strategy delivers the best of both worlds to the buy-side,” added Ronan Ryan, Chief Strategy Officer at IEX, in an accompanying statement.

Last week, Liquidnet unveiled its integration with seven Order Management Systems (OMS), helping provide direct connectivity into its inaugural dark pool for corporate bonds, which it has scheduled for launch in Q3 2015. Amid a recent survey and strong interest among market participants and buy-side firms, collectively comprising $12.15 trillion in assets under management, Liquidnet’s platform emerged as a strong preference in the corporate bond realm, prompting the integration.

Liquidnet is the worldwide institutional trading network, boasting over 780 leading asset managers – the coalescence of industry talent and like-minded individuals foster a duality of aims, such as anonymity and minimum market impact. The group itself specializes in large block trading, having permeated over 43 markets on 5 continents.

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