ConvergEx Group, a trading technology and execution service provider, has launched a new automated trade messenger system to help advertise its internal liquidity to clients.
The new system aggregates ConvergEx’s high-touch order flow and aims to increase the amount of liquidity clients can interact with via natural indications of interest (IOIs). Since installing the trade messenger system, ConvergEx has reported a fourfold rise in the number of natural IOIs sent to its customers.
“Our new trade messenger technology provides tremendous efficiencies and gives a much more immediate view of ConvergEx’s natural flow to cross against. This is especially valuable for clients who are dealing with illiquid names,” said Anthony Conroy, head trader at ConvergEx.
Previously, ConvergEx used a manual solution that sent out IOIs using a dissemination tool such as Tradeweb’s AutEx.
The new centralised system is backed by real-time market data and allows clients to customise the IOIs they receive based on their individual interests and watch lists. The orders are kept current by automatically checking the marketability and availability of the order and are monitored by ConvergEx’s execution specialists.
“By streamlining and centralising our internal processes, we have dramatically increased the number of high-quality IOIs we send and clients are seeing greatly increased matched rates against the firm’s liquidity,” said Carey S. Pack, chief executive officer of ConvergEx Execution Solutions. “Having a wealth of natural IOIs gives ConvergEx and our clients a tremendous advantage sourcing liquidity in today’s fragmented and complex markets.”