US agency broker and block crossing system operator Pipeline has added a block equity options crossing capability to its order control system for the buy-side.
The implementation of the new feature, called Blind Bid Options Cross (BBOX), will allow buy-side traders to access block liquidity for both stocks and equity options from a single user interface.
As a result of the addition, the Pipeline system now offers a new tool, the Options Liquidity Optimizer, which quantifies the aggregate risk of each block option order and assigns the trade to one of three different auction methodologies. The selection criteria are customised for each client. Pipeline will also now accept multi-leg options orders in addition to its simple option, delta neutral and covered call capabilities.
“This new capability demonstrates Pipeline’s commitment to providing its customers with the best tools for their trading needs,” said David Mortimer, Pipeline’s managing director of equity options, in a statement. “Through the integration of the BBOX system we have added a significant customer-driven enhancement. The initial feedback from buy-side clients has been positive and we are now ready for general deployment to our customer base and new clients.”