ITG, an independent broker which provides liquidity, execution, analytics and workflow solutions to asset management and brokerage firms, today provided an update on its PowerMatch functionality, which provides POSIT Alert’s highest-performing users with notifications of larger trading opportunities.
In its statement, the firm said that PowerMatch is delivering average block sizes of 66,000 shares in the US and 85,000 shares in Canada, about twice as large as average human trade sizes in POSIT Alert overall.
For small-cap names, PowerMatch offered average block sizes equal to 39 percent of average daily volume (ADV) in the US and 27 percent of ADV in Canada for the month of August 2016.
PowerMatch notifications are available to all POSIT Alert participants with PowerScores of at least 75 on a scale of 100. All Alert participants are scored on an average of several block crossing participation factors, weighted to reflect relative importance.
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The highest PowerScores are given to traders who respond quickly, firm up an order, and firm up in size. The PowerScore methodology has been improved based on client feedback following the launch of PowerMatch in May.
POSIT Alert is essentially an indications system that anonymously delivers institutional block crossing opportunities to a client’s desktop from the uncommitted shares of participating buy-side clients, combined with order flow in POSIT and ITG Algorithms. It seeks to eliminate time-consuming negotiations, reduce costs, and improve performance, all while maintaining anonymity.
Andrew Larkin, Managing Director in charge of POSIT Alert coverage at ITG, commented: “The PowerScore approach has been a clear success, improving the quality of interactions in POSIT Alert overall and offering PowerMatch opportunities to our best block traders.”
Broker Block Functionality
ITG also announced today that it will be launching new Broker Block functionality in POSIT Alert in October. POSIT Alert participants who choose to enable Broker Block functionality will have the option to trade with sell-side conditional orders, providing the opportunity to source block liquidity from a curated list of institutional brokers.
Commenting on the latest enhancements, ITG’s Head of Execution Services Jamie Selway said: “We are dedicated to providing clients with access to quality block liquidity and to continually improving outcomes for the POSIT Alert community.”