Virtu adds new rules and logic to US POSIT platform ahead of technological rebuild

Alongside changes to matching rules and new subscriber segmentation, the Virtu POSIT ATS will also undergo a technological rebuild to improve system performance.

Virtu has rolled out several changes to its US block trading venue POSIT and confirmed the alternative trading system (ATS) will undergo a technological rebuild this year.

The changes to Virtu’s US POSIT platform include the introduction of new matching rules changes such as price/size/time order priority, and price improvement being given to the liquidity provider.

Segmentation rules have also been added to the system that will segment subscribers into three categories, neutral, move towards and move away, using a ‘markout’ methodology that uses long time horizons. Subscribers will then have the option to opt out of interacting with either the move towards or move away segments on an individual order basis.

“The new matching rules, subscriber segmentation and corresponding counterparty selection optionality for POSIT ATS were designed to align with the interests of institutional investors executing longer duration parent orders,” said Brad Johmann, global head of POSIT Alert and US ATSs.

“POSIT’s enhanced subscriber segmentation logic based on long time horizon markouts provides participants with an alternative approach to the very short time horizons typically used in so many other ATSs today.”

Alongside the specific changes to the US POSIT ATS, Virtu also confirmed that throughout the rest of this year the entire system will undergo a technological rebuild to improve its general performance.

Virtu inherited the POSIT block trading platform, alongside block indications network POSIT Alert, following its $1 billion acquisition of agency broker ITG in 2019. The trading firm has since invested in POSIT and in February reduced routing commissions for POSIT Alert in Canada after Liquidnet upped its fees fivefold.