Broker ITG will offer futures execution and routing as part of an expansion to meet a spike in futures trading.
The futures execution capabilities will include functionality enabling rolling of futures contracts at expiration dates, while traders will be able to use direct market access and ITG’s futures algorithms.
The routing capabilities for futures will be available on ITG’s trading platforms through an agreement with investment bank Morgan Stanley. ITG’s Triton execution management system and ITG XIP order management system will provide routing services and the firm’s Net FIX connection will offer the service to third party platforms.
In addition, broker-neutral routing will access venues in North America, Europe and the Asia-Pacific region.
Jamie Selway, head of liquidity management at ITG, said the new offering would target clients looking to grow their business in new instruments.
“These expanded futures capabilities demonstrate our commitment to access liquidity across asset classes and around the globe for our clients,” Selway said.
Futures trading activity has spiked since 15 October when US regulator, the Commodity Futures Trading Commission, amended new rules on derivatives trading, resulting in a migration of flow from swaps to futures. The new rules are mandated by the Dodd-Frank Act and are expected to come into force in the first half of next year.
New futures products created by CME Group and IntercontinentalExchange have been designed to mimic swaps that will come under increased regulatory demands, potentially forcing up trading costs.