GETCO, a Chicago-based electronic market making and technology firm, has launched a European version of its dark pool.
The crossing network, GETCO Execution Services (GES), will allow brokers to execute flow from their buy-side clients against liquidity generated by GETCO’s market making operations.
GES liquidity comprises market-making flow from 50 exchanges and alternative venues across Europe, the Americas and Asia.
The platform will be operate under MiFID as a broker crossing network and will be regulated by the UK’s Financial Services Authority.
GES will also offer central counterparty clearing (CCP) services for its crossing engine provided by UK clearing house LCH.Clearnet. Using a CCP allows market participants to mitigate the systemic risk of their trading counterparty defaulting by passing responsibility for a trade to a central entity.
According to GETCO, client orders directed to the platform will provide sub-millisecond execution and will be executed at the European best bid and offer benchmark or better.
GES in the US was the fourth largest dark pool in May, trading 1.09% of total consolidated liquidity, according to Let There Be Light, a monthly analysis of dark pool trading in the US from boutique brokerage Rosenblatt Securities.