If you have ever taken advantage of dark pool liquidity, you know that “gaming” hazards are a reality. By selling one or two small lots, a gamer can determine that a passive buyer has placed a standing order in a stock. The gamer then moves the market slightly and sells at a higher price. Having confirmed an opportunity, the gamer will quickly move in to obtain larger prints at substantially higher prices. This often happens without the trader’s knowledge—and when it does, performance can be dramatically undercut.
How ITG can help
POSIT Marketplace® is ITG’s single source to high-quality liquidity. Using our proprietary Liquidity Filter, POSIT Marketplace extracts quality liquidity from various dark pools. Advanced order placement logic in POSIT Marketplace is designed to interact intelligently against each type of liquidity, seeking out blocks, proactively minimizing information leakage and protecting against gaming.
What’s more, ITG offers full transparency through the POSIT Marketplace Report Card that evaluates performance of each dark venue. Workflow is streamlined too—POSIT Marketplace® lets traders interact with standing orders, ITG Algorithms® market-bound flow and unplaced shares from the trading blotters of POSIT Alert® participating clients.
