Fidessa LatentZero's partnership with Pipeline Trading Systems LLC will give buy-side traders the ability to match up large block trading opportunities in Pipeline ATS with orders on their blotter without risking information leakage.On Monday, Fidessa LatentZero announced the partnership with Pipeline to enable institutional clients of its order and execution management system (OEMS), Minerva, to send orders to Pipeline directly from the Minerva OEMS blotter with single-click efficiency.
"In the old model, customers would have no means of properly matching up liquidity opportunities on Pipeline with what's on their blotter," says Fred Federspiel, president of Pipeline Systems. "This does that automatically," says Federspiel. "It delivers trading opportunities that are matched up against orders in their blotter. So that makes a tremendous night and day difference on their usability," says Federspiel. "Now you can see a pop up indicating activity in a name you're interested in trading. You know it matches stock you intend to trade today," he says.
In recent weeks, the Pipeline Block Market has traded over 50 million shares per day with average trade sizes peaking over 60,000 shares.
The integration is different from other ATSs in the market, such as Liquidnet or ITG Posit's Block Alert or Pulse Trading's block trading screen, because " the information never leaves your screen," maintains Federspiel. The information stays on the institution's side of the firewall, he says. "It's not like a negotiation model where the information leaves the buy-side firm's screen and goes to a central market, he says.
With the Pipeline-Minerva integration, the client will have a piece of the Pipeline application running on the desktop and will be alerted to trading opportunities and place orders through the Pipeline front end. For example, if there is activity in General Electric stock, the client receives a message saying there's a trading opportunity for G.E. "On the client side, it checks does the client care about G.E.," says Federspiel. That's different than saying this institution is a buyer of G.E," he says. "There's no way that information can be sniffed from the system ," he insists.
Will the integration attract more order flow to Pipeline? Federspiel says the integration with Minerva makes it more attractive to trade with Pipeline. "I expect that we will be able to add more big customers," he says. Though Pipeline already has the large U.S. firms as clients, "We're hopeful that additional convenience and functionality will drive more flow from existing customers, especially in the U.S.," says Federspiel.Fidessa LatentZero's partnership with Pipeline Trading Systems LLC will give buy-side traders the ability to match up large block trading opportunities in Pipeline ATS with orders on their blotter without risking information leakage. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio