BlockMatch is built on Instinet''s low-latency, matching technology and is a European multilateral trading facility that provides equal access to strict price-time priority matching in an anonymous agency environment .
Functionality and order types
BlockMatch is fully dark, with no indications of orders sent, no orders routed onwards, and no quotes displayed in public markets. It includes order flow from clients and liquidity from reciprocating dark pools. BlockMatch supports all advanced order types, including limit, market, minimum fill and time-in-force and also includes a closing cross facility and provides immediate post-trade reports.
Access and participation
BlockMatch is available to institutional clients and vetted sell-side participants. It is available from Instinet”s Newport 3 execution management system, its Execution Experts algorithmic suite, multiple third party trading systems or via a direct FIX connection. All clients (traditional asset managers, hedge funds and proprietary trading firms) can have all or part of their order executed in BlockMatch.
The dark pool offers trading in more than 1,100 cash equity instruments covering 14 European markets. Average execution size for BlockMatch in May 2011 was 1,027 shares/€7,112. Average number of shares matched daily was 4.21 million in May and 7.68 million in April (single counted).
Instinet”s Nighthawk dark aggregation algorithm uses sophisticated submission tactics and anti-gaming logic to avoid potentially exploitable predictable trading patterns. Instinet encourages clients to access all of its dark pools through Nighthawk. Instinet operates BlockMatch and provides functionality that enables clients to set their own anti-gaming parameters.
Instinet obtains reciprocal dark pool access arrangements with as many parties as possible. Access is provided via smart order router and the Nighthawk algorithm; there is no direct connection between the dark pools.