BNY ConvergEx, a US-based agency broker and technology provider, has redesigned its TactEx Grey order type, which simultaneously accesses to dark and lit venues, to allow clients to alter their participation level.
The newly-designed order type passively pegs the displayed market, while simultaneously layering orders into specifically selected dark pools as volumes increase. As executions occur, Grey recalibrates between displayed and dark venues, capturing liquidity as it becomes available while ensuring measured participation and limiting information leakage.
“As the trading landscape continues to evolve and fragment, our customers are looking for new ways to reduce signalling and their footprint in the market,” said Craig Viani, managing director and head of ConvergEx’s electronic trading product management, in a statement. “Implementing a measured participation style, Grey seeks favourably priced liquidity between both the displayed markets and dark pools while maximising anonymity.”
ConvergEx’s TactEx DMA order types suite was launched in June 2008 and was designed to give traders more control over execution decisions than dark algorithms.