Liquidnet has developed a new algo in conjunction with US-based anti-HFT exchange IEX.
The algorithm, Liquidnet Dark IEX, is an order routing strategy intended to enable orders being worked within IEX to also be able to access opportunities within Liquidnet’s institutional-only dark pool.
Orders placed using the algo will be exposed to Liquidnet’s liquidity pool in addition to IEX and can be accesded by Liquidnet clients through their desktop application software or via the Liquidnet trading desk.
“For the buyside looking to execute blocks, Liquidnet sets the standard in “upstairs trading” while we at IEX are proud of attracting large orders in the continuous market through our protective technology. This new routing strategy delivers the best of both worlds to the buyside,” commented Ronan Ryan, Chief Strategy Officer at IEX. “Through this collaboration, safe access to two significant pools of liquidity are brought together for the buyside.”
IEX was launched last year and also featured heavily in Michael Lewis’ high-frequency trading exposé Flash Boys. It imposes a mandatory delay on order processing to limit the effectiveness of latency arbitrage strategies and targets institutional investors in the US.