ITG's Posit is nothing like ASTN
It works like an automated stock
specialist close-matching trades
and keeping traders private.
their handling of nearly 6 Billion
shares the past 12 months only shows
how much need their is to any good
alternative to tradition exchanges.
They handle about 20mil shares a
day, and may be where ASTN got that
volume as a goal for year end. It
took ITG 7 years to get up to 20mil
shares a day, but then again, the
markets never processed this many
shares before.
itginc.com
HOW POSIT WORKS:
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Buy and sell orders, including both individual stocks and
portfolios, are entered into the system from many sources. Six
times daily -- on the hour from 10 a.m. to 3 p.m. Eastern
time—the main POSIT computer processes and compares all
orders confidentially. For maximum security, each match is run
at a randomly selected time within a five-minute window
immediately following the scheduled match time.*
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POSIT trades are priced at the midpoint of the bid/offer spread
(the difference between the best seller's asking price and the
best buyer's bid) in the stock's primary market at the moment
the match is run.
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Those orders which match are automatically executed.
Immediately after each match, clients receive electronic
reports showing match results for their orders. Clients then
decide whether to keep unmatched orders in the system for
future matches or to execute them by other means.
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Orders are matched by a computer using a proprietary
algorithm.
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No user knows the identity of other users or the specifics of
orders and residuals.
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POSIT is currently used by more than 500 major institutions
and broker/dealers.
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Users employ a variety of active, quantitative, and passive
trading styles.
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Orders cover the full spectrum of the equity marketplace.
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Users also have the option to match trades based on stock or
portfolio characteristics, rather than on individual names alone.
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POSIT's confidentiality eliminates the unfavorable market
impact that can result from trading in an open arena, which is
often cited as the single largest factor in transaction costs.
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Low commission rates provide additional savings.
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Mid-point pricing means users save half the bid/offer spread,
rather than paying the entire spread as they might if trading
by traditional means.
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POSIT orders can be placed through the ITG Platform, an
easy-to-use, Windows-based interface providing direct PC
access to DOT and the ITG Trading Desk.
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Portfolios can be imported directly from Excel and Lotus into
the ITG Platform, eliminating the need to re-key orders.
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POSIT is directly linked to several order management systems,
including Bridge IOE, BRASS, Bloomberg, and ESI.
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QuantEX®, ITG's high-end trading system, also offers POSIT
access as part of its electronic routing capability.
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Unmatched orders may be left in the system for entry into
upcoming matches offering a different liquidity profile.
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Using the ITG Platform, unmatched orders can automatically be
routed to the ITG Trading Desk.
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Through the ITG Trading Desk, unmatched orders may be
electronically routed to any one of the primary or regional
exchanges or to OTC market makers. Orders may also be
completed on an agency basis.
*A match may be delayed up to the end of the five-minute window if, in ITG's
judgment, there could be a significant increase in the match's liquidity.
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