Barclays DirectEx Enables Algo Users to Generate IOIs
May 25 2017 - 9:26AM
Business Wire
Barclays Capital Inc. announced today the launch of an
algorithmic trading feature in the US that allows users to post
block interest in Barclays DirectEx, the firm’s block ATS that
disseminates actionable IOIs to its subscribers to find the other
side of an order. All posted order flow in DirectEx is natural
block liquidity sent through Barclays’ liquidity-seeking algorithm,
Hydra®.
Barclays DirectEx was first launched in 2012 as the firm’s first
actionable IOI platform for both natural and non-natural liquidity.
Since the launch of its TradePx (“Trade Price”) actionable IOIs for
targeted markets representing internal desk liquidity, Barclays has
refocused DirectEx on crossing natural block liquidity between
clients.
DirectEx connects block interest between electronic and
high-touch trading clients through its integration with conditional
orders and IOIs. Electronic trading clients can post conditionally
to DirectEx from Barclays’ algorithms1, while clients can respond
to actionable IOIs linked to those orders.
Using a “Smart Post” IOI dissemination method, the IOIs
generated from electronic orders are sent to DirectEx subscribers
who are most likely to be on the other side of the trade, based on
factors such as subscribers’ activity in a particular security.
Clients can view and interact with Barclays’ actionable IOIs
through one of several third-party order management systems
integrated with Barclays IOIs, many with click-to-trade
functionality.
When an execution occurs in DirectEx between two clients,
whether they are a high touch or an algorithmic trading client,
they may be offered a follow-on, high-touch block trade if the
opportunity presents itself.
“We believe DirectEx is a unique liquidity source because of the
way it bridges the divide between our electronic and high-touch
clients,” said Joe Mecane, Head of Equities Electronic Trading.
“The evolving distinction between low-touch and high-touch trading
is leading not only to innovation in liquidity solutions, such as
DirectEx and automated capital commitment, but also in coverage
models. We find that clients are increasingly comfortable with
controlled visibility of their interest, if it means finding
liquidity.”
Barclays provides further information on DirectEx in the Order
Handling Transparency section of barclays.com/equities, where ATS
and FAQs documents are made publicly available.
1 Barclays Sales and Trading may also post to DirectEx from
Barclays’ algorithms on behalf of their high-touch clients.
Barclays is a transatlantic consumer, corporate and investment
bank offering products and services across personal, corporate and
investment banking, credit cards and wealth management, with a
strong presence in our two home markets of the UK and the US. With
over 325 years of history and expertise in banking, Barclays
operates in over 40 countries and employs approximately 120,000
people. Barclays moves, lends, invests and protects money for
customers and clients worldwide. For further information about
Barclays, please visit our website home.barclays
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version on businesswire.com: http://www.businesswire.com/news/home/20170525005590/en/
Press:Barclays Capital Inc.Andrew Smith,
+1-212-412-7521andrew.x.smith@barclays.com
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