Instinet Europe, an agency brokerage, has added a pan-European closing cross to its BlockMatch non-displayed equities multilateral trading facility in a bid to encourage more large trades on the platform.
The cross will operate from 16.40 to 17.00 Greenwich Mean Time and match orders on a continuous basis based on time priority. Executions will take place at the closing auction price of the relevant primary exchange. Users will also be able to specify a minimum fill amount.
“We hope the closing auction would encourage larger trades on BlockMatch, given the ability for investors to set a minimum fill,” Richard Balarkas, CEO, Instinet Europe, told theTRADEnews.com. “This is where we think dark trading should be heading and we want more investors to feel comfortable leaving large orders in dark pools with conviction on the price and size available.”
Instinet claims BlockMatch’s closing cross is the first of its kind in Europe.
According to Balarkas, Instinet’s agency-only status has allowed the firm to continue developing products. “Some firms have had budget restraints and subsequently stopped investing in their technology,” he said. “Market conditions are testing but for us its business as usual.”
BlockMatch was released in June last year. It does not admit any proprietary trading flow and allows clients to choose whether to display their intentions to other platform members using indications of interest or keep their orders completely hidden.