IMTRADER, the instant messaging network for brokers and fund managers, says that its instant messaging service can now be used to sweep electronic pools for hidden and visible liquidity – including crossing networks or “dark pools” of liquidity.
The expanded functionality is the result of a partnership with UNX, an agency brokerage firm specializing in providing advanced trade execution services to institutional investors.
UNX Senior Managing Director of Business Development Matt Michelsen explains that UNX’s clients “are increasingly relying on the benefits of instant messaging and our commitment to them demands that we meet their needs with the most robust technology available. We have been working with IMTRADER for a year now and have seen considerable value in its communications functionality. It was a logical step to take the speed and immediacy of IMTRADER and merge that with our algo strategy services.”
The aim is to integrate algorithm systems with the IMTRADER network to enable users
to use instant messaging to communicate orders to UNX and rapidly and anonymously sweep electronic destinations for liquidity.
“Traders are able to employ sophisticated algo trading through a simple IM interface,” explain the two companies in a statement. “The process is initiated by clicking on a designated name from their IMTRADER Buddy List. UNX’s highly regarded Algorithmic Market Access (AMA) technology is leveraged to extract available liquidity from nearly every electronic destination.”
Through the partnership, IMTRADER offers two tools: IOC Sweep and Penny Probe. The IOC Sweep algorithmically sweeps electronic markets at a user-defined limit price extracting available liquidity. Penny Probe extracts liquidity by algorithmically sweeping liquidity within the bid-ask spread at ascending or descending one-penny increments.
“We see increasing interest in rapidly sweeping pools of liquidity from fund managers, traders, and other investment professionals, particularly when it comes to crossing networks,” adds Pivot Solutions Senior Vice President of Sales Ed McDonnell. “This new capability allows them to use the immediacy of instant messaging to extract liquidity while leaving no footprint when they do so. It provides our customers with advantages in both speed and thoroughness. Being able to offer UNX’s sophisticated algo capabilities on the IMTRADER network greatly expands the value we can bring to investors and fund managers. “