The Liquidity Filter, at the heart of POSIT Marketplace, stems from our research on more than 40 dark pools which encompass different types of liquidity of varying quality levels and in varying proportions.

Based on this research, ITG developed the Liquidity Filter to:

Allocate orders to the highest-quality pools first, maximizing opportunities to cross against institutional block flow. In contrast, simple dark pool aggregators generally work by fanning orders out to as many dark pools as possible, greatly increasing the risk of information leakage.

Target quality liquidity by counterparty identification. Our filtering process uses these stats in real time, applying this data to selectively strip out the quality liquidity by using special order types, constraints, and tactical placements.

Protect against gaming. Developed by reverse engineering gaming patterns, ITG’s Anti-Gaming Logic provides real-time protection against pinging and short-term adverse price movement.