SmartPool, the pan-European dark pool operated by exchange group NYSE Euronext, has unveiled plans to launch MatchView, a post-trade analytics and data consolidation service for non-displayed trading venues.
MatchView has been created in partnership with ioinet, the indications of interest and liquidity discovery tool purchased by NYSE Euronext’s technology unit NYSE Technologies when it acquired trading solutions provider NYFIX last year.
The service, which is slated for launch in Q2 this year, will give traders real-time access to consolidated post-trade dark pool data and the ability to use the data in conjunction with their existing desktop applications.
“The aim is to provide a liquidity discovery and analytics tool for traders,” Lee Hodgkinson, CEO, SmartPool, told theTRADEnews.com. “Where as other end-of-day data tools are most useful for market structure experts, MatchView is designed to specifically help buy and sell-side traders and can be integrated into order management systems and other analytics tools.”
According to Hodgkinson, a trader looking to execute two or three days’ average daily volume in a stock, for example, can use MatchView to create a custom watch list to understand what relevant liquidity is trading in specific non-displayed venues. This information can be combined with historic data to understand dark pool characteristics, such as which venues are geared towards block flow.
SmartPool also intends to add in price improvement and implementation shortfall analysis to the service.
The service will initially launch in Q2 with SmartPool data, with other dark multilateral trading facilities scheduled to add their data to MatchView throughout the summer, subject to commercial agreements.
SmartPool is also in discussion with investment banks that operate dark pools about joining the service, although Hodgkinson admitted that broker dark pool data may not be available in real-time or be identified by specific venue.
“Some brokers have said they may provide us with real-time data, while others have said they may provide us with delayed data,” added Hodgkinson. “Much of the business in broker dark pools is done on risk, so we recognise the need for this data to be handled with sensitivity. We will therefore not prescribe a set of rules for adding data to the service but work with our members and market users to find an optimum solution.”
Brokers currently post all their non-exchange equities trades to reporting venues such as the OTC-specific BOAT. However, trades executed on an automated basis in broker dark pools or systematic internalisers are not identified separately from trades handled manually by the brokers’ ‘upstairs’ trading desks.