BNY CONVERGEX LAUNCHES NEW ORDER TYPE TO TOGGLE BETWEEN DARK AND CLEAR LIQUIDITY

Posted September 10, 2009

NEW YORK – Investment technology solutions provider and global agency brokerage BNY ConvergEx LLC has launched a redesigned TactEx “Grey” order type.

“As the trading landscape continues to evolve and fragment, our customers are looking for new ways to reduce signaling and their footprint in the market,” says Craig Viani, Managing Director and Head of ConvergEx’s Electronic Trading Product Management. “Implementing a measured participation style, Grey seeks favorably priced liquidity between both the displayed markets and dark pools while maximizing anonymity.”

The new Grey order passively pegs the displayed market while simultaneously layering orders into carefully selected dark pools as volume increases. As executions occur, Grey dynamically recalibrates between displayed and dark venues, capturing liquidity as it becomes available while, at the same time, ensuring measured participation and minimizing information leakage.

Initially launched in June 2008, TactEx was the first suite of direct market access order types that allowed traders to access both dark and displayed liquidity simultaneously in a seamless fashion. TactEx orders are designed to increase execution opportunities by reaching multiple liquidity sources while simplifying a trader’s workflow. Unlike dark algorithms, which are designed to make decisions for traders, TactEx gives a trader full control over execution decisions. TactEx divides the rest of the order between multiple dark venues, including VortEx, ConvergEx’s dark pool.