The non-displayed multilateral trading facility (MTF) operated by Swiss investment bank UBS plans to introduce functionality that allows executions to be pegged to the bid or offer price.
Pegged orders on UBS MTF must either be day or immediate-or-cancel order types and will use the primary market of a stock's listing as their reference price. The new functionality will initially be made available on 12 August, with a transition period due to last until 2 September.
UBS said the addition of pegged orders to its MTF is part of a continuous programme of enhancements to its service and was made in response to customer demand.
Currently, trades on UBS MTF are executed at the mid-point price of a stock's listing.
UBS MTF, which launched in November 2010, traded €538 million in June, representing 2.56% of dark MTF trading according to data from Thomson Reuters' Equity Market Share Reporter.
With the European Commission set to clamp down on the internal crossing networks operated by brokers as part ofMiFID II , many are now looking to launch dedicated dark MTFs. Nomura converted its NX crossing network into a MTF in January 2010, while Goldman Sachs launched Sigma X MTF – which also offers pegged orders – in April.