In Asia the POSIT crossing products operate
in Australia, Hong Kong and Japan. ITG offers POSIT Alert, a buy-side to-buy-side
alerting product which identifies trading opportunity on buy-side trading
blotters, and POSIT Marketplace, the region’s largest dark pool aggregator in
terms of traded volumes.
ITG’s POSIT products all maintain anonymity
of counterparty throughout the trading and the clearing and settlement process.
ITG uses a combination of automated checks and human monitoring to manage dark pool
quality. ITG’s liquidity filter and ongoing analysis of execution quality in
all pools connected to POSIT Marketplace helps maintain performance standards
and provide transparency to clients.
The POSIT products are used primarily to cross buy-side order flow for
clients sending orders to ITG’s desk, algorithms or directly for crossing.
POSIT Alert only indicates to buy-side traders that there is available liquidity
in the system. In POSIT, buy-side firms can choose to interact only with other
buy-side clients. For a broader liquidity pool, POSIT Marketplace connects over
18 dark liquidity pools in Asia and any client may send orders to interact
withliquidity in those pools.
Order types and matching logic
POSIT crosses are generally done at the
mid-point, with no need for negotiation, though passive and aggressive pegging
are also available. In the case of multiparty crosses, they will be pro-rated
based on order size.
POSIT Marketplace connects to 11 different
dark liquidity providers in Asia Pacific and over 18 pools. As the number of
available pools in the region continues to expand, POSIT Marketplace will connect
In March 2012, POSIT Marketplace average
daily value crossed was over US$50million and volumes have more than doubled since