Direct Edge, a US stock exchange operator, has extended its high-speed network to seven dark pools, giving its members low-cost access to new sources of liquidity.
Using Connect Edge, the bourse's low-latency proprietary network that launched at the end of 2010, Direct Edge users will be able to route orders to dark pools comprising: Barclays Capital's LX; Credit Suisse Crossfinder; GETCO Execution Services; Goldman Sachs' SIGMA X; Knight Capital's Knight Link and Knight Match; and LeveL ATS.
According to Direct Edge, routing orders via its Connect Edge network reduces costs for clients by eliminating the need for them to establish individual telco links to each market.
Members of Direct Edge can link to the Connect Edge network via multiple points of presence that are cross-connected within their own facilities.
“Low-cost access to comprehensive liquidity – both on- and off-exchange – is crucial, and it is our goal that Connect Edge customers have a high-quality, low-cost way to reach it,” said Kevin Carrai, head of connectivity services at Direct Edge. “Adding the major dark pools to our destination venues is a logical extension of the Connect Edge value proposition, further enabling customers to control costs and maintain their competitiveness.”