Barclays goes live on new XTX Markets US dark pool

The new single dealer platform allows brokers such as Barclays to provide liquidity directly to US institutional clients trading in US equities.

London-based market maker XTX Markets has launched a dark pool for US equities with Barclays as one of its first confirmed broker partners.

The single dealer platform, named XTX Direct, is built on the same technology as other bilateral trading venues and is aimed at providing institutional market participants with access to better liquidity.

“Although we will continue our advocacy for policies incentivising on-exchange trading, we will also vigorously compete wherever we can provide a superior trading experience for our clients,” said Eric Swanson, chief executive officer of XTX Markets Americas.

XTX said that it had already partnered its XTX Direct platform with several brokers, among them Barclays, that will be able to offer liquidity to users of the platform.

“XTX is a leading provider of liquidity in US equities and we are excited to make their liquidity available to our institutional clients through the BARX suite of algorithms,” said Kevin O’Connor, head of US equities electronic sales at Barclays Plc.

The market marker said it has a proven track record in off-exchange direct access offerings, claiming its systematic internaliser platform is the largest by volume in the European markets.

Earlier this year, research by the UK’s Financial Conduct Authority (FCA) found that trading in venues that the EU has tried to restrict or ban, including dark pools and periodic auctions, could reduce transaction costs as more transparent venues tend to incur higher costs and implementation shortfall.