Agency broker ITG has unveiled Liquidity Guard, a new tool developed to protect buy-side orders in its POSIT suite of crossing solutions.
Liquidity Guard works to prevent and detect potential gaming of client orders in POSIT.
The tool compares current market activity against historical trades to identify abnormal pricing and proactively avoid bad executions.
After a trade has been completed, Liquidity Guard analyses executions using advanced logic to highlight outliers that could constitute gaming activity.
“POSIT is the industry leader for institutional crossing in 28 markets worldwide, and Liquidity Guard enhances POSIT’s value as a quality execution destination,” said Jamie Selway, ITG managing director and head of electronic brokerage. “Liquidity Guard demonstrates our commitment to providing clients with innovative solutions which continually improve trading performance.”
In January, ITG POSIT traded an average of 48.8 million shares per day in the US, representing 0.77% of overall US trading, according to estimates from US boutique brokerage Rosenblatt Securities. In Europe, POSIT traded €3.39 billion worth of equities last month, giving it a 10.9% share of total activity executed on dark multilateral trading facilities, according to Thomson Reuters.