Barclays Capital has developed an algorithmic trading feature in the US allowing users to generate block indications of interest (IOIs) through its DirectEx platform.
The bank explained using a ‘smart post’ IOI dissemination method means IOIs generated from electronic orders are sent to DirectEx subscribers that will most likely to be on the other side of the trade.
Clients will be able to view and interact with Barclays’ actionable IOIs through several third-party order management systems, many of which include click-to-trade functions.
Joe Mecane, head of equities electronic trading at Barclays, explained the evolving distinction between high and low-touch trading is leading to more innovation in liquidity solutions and coverage models.
“We find that clients are increasingly comfortable with controlled visibility of their interest, if it means finding liquidity,” he said.
The DirectEx platform was launched in 2012 and was the bank’s first IOI platform for both natural and non-natural liquidity.
It connects block interest between electronic and high-touch clients through integrating conditional orders and IOIs.