Pipeline Trading Systems, a US block trading venue, has unveiled PowerPlay, an equities block-trading execution system for buy-side traders who want to execute large orders in volatile and fragmented markets.
PowerPlay gives traders access to a combination of proprietary technologies, which allow them to control simultaneous execution of multiple large orders from a single window.
According to Pipeline, PowerPlay will allow traders to minimise information leakage that results from small, probing executions. The platform will use Pipeline’s new Contra Targeting encryption technology, due to be launched in March, which allows traders to find natural matches to large trades by using information from the order management systems of other buy-side traders on the platform.
“PowerPlay traders manage the block search by ‘pushing’ information only to pre-qualified contras, and only when they believe the time is right,” said Michael Hayes, vice president of sales and client services, Pipeline, in a statement. “Unlike other matching systems, there is no blotter scraping, or automatic centralisation of traders’ intentions, and no dissemination of blotter information throughout the day.”
Users can also use the PowerPlay interface to execute using algorithms from multiple vendors across 43 liquidity pools, using Pipeline’s predictive switching technology – the Algorithm Switching Engine.
“Fragmentation and volatility challenge the effectiveness of any single algorithmic trading strategy,” said Fred Federspiel, president, Pipeline. “With split-second changes in market conditions, traders can use our tool to select the right algorithm for the moment while avoiding pattern detection.”