Convergex, an agency-focused global brokerage and trading related services provider, today reported that its ETF Direct platform has experienced significant volume growth and continues to attract key market participants with its solutions which span global high-touch and electronic trading, options technologies, prime brokerage, clearing and commission management.
ETF Direct is a platform that streamlines the process for firms accessing quotes from numerous ETF liquidity providers. Its key functionality includes the ability to request competitive quotes simultaneously from multiple liquidity providers, complete anonymity for clients and market makers, access to an aggregated, competitive market, no minimum or maximum order size and a comprehensive audit trail, highlighting transparency.
Since its launch earlier this year, over 12 million shares have traded with a notional value of approximately $700 million. The company which recently entered into a clearing agreement with INTL FCStone Financial Inc. to offer its clients access to FCStone’s futures execution capabilities and prime brokerage platform, has also recorded further positive results including:
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– The average block size is equal to 32 percent of average daily volume (ADV) for the month of March 2016
– Since its launch, the average slippage measured versus arrival price (midpoint) is -2.77 bps or .0277%
– Select ETFs are transacting greater than 2x ADV
– April monthly volume increased 30% over March’s monthly volume
Eric W. Noll, Convergex President and CEO, commented on the upbeat data: “We created ETF Direct in response to client feedback and market demand for a user-friendly platform that would bring greater transparency to a market that has historically been rather opaque. ETF Direct enables clients to execute block ETF transactions in an anonymous environment and in their entirety.”