Squawker Targets Anonymous Block Trading with Launch
Squawker has announced the launch of its block trading negotiation venue for institutional clients, which fuses anonymized orders with social media technology.
Regulated by the UK Financial Services Authority (FSA) and based in London, Squawker secured series A private investment eight weeks ago. The platform itself, which has a tenative go-live date for the first quarter of 2013, operates with a primary emphasis on human interaction. Trades are negotiated anonymously through the platform, while the ability to evaluate a counterparty adds in a new dimension to operations. Traders will be able to set parameters regarding elements such as failed trade numbers, for instance, to source preferred archetypes of counterparties.
Squawker will include in-built audit trail and compliance functionality along with its anonymized social aspects. The reduction of algorithmic order flow in this fashion, along with mitigating the potential effects of 'pinging'─where small buy and sell orders are sent into a market in order to determine the size of a block trade─will reduce toxicity in the market, say Squawker's executives.
"Order book trading has reduced costs and improved efficiencies for smaller orders," says Chris Gregory, director at Squawker. "Larger-sized trades remain difficult to trade both on and off exchange. Sell-side traders currently have two choices; risk the market and opportunity costs of slicing and dicing block trades and executing them through either lit or dark order books, or trade via an interdealer broker, without the benefits of electronic transaction processing, compliance monitoring or audit trail. The time has come for a new type of trading venue, one that eliminates algorithmic flow and combines personal interaction and behavior with the efficiencies of electronic processing. In so doing, the financial markets will finally have an electronic venue free of toxicity."
On launch, Squawker will support all stock exchange-traded instruments in 16 European nations.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Launch of Deutsche Börse’s midpoint dark pool delayed
The exchange group faces a roadblock as it awaits a reference price waiver from its regulator.
Tech VC funding: It’s not just about the money
The IMD Wrap: It’s been a busy year for tech and data companies seeking cash to kick-start new efforts. Max details how some are putting the fun into fundraising.
Bond tape hopefuls size up commercial risks as FCA finalizes tender
Consolidated tape bidders say the UK regulator is set to imminently publish crucial final details around technical specifications and data licensing arrangements for the finished infrastructure.
If M&A picks up, who’s on the auction block?
Waters Wrap: With projections that mergers and acquisitions are geared to pick back up in 2025, Anthony reads the tea leaves of 25 of this year’s deals to predict which vendors might be most valuable.
The Waters Cooler: A little crime never hurt nobody
Do you guys remember that 2006 Pitchfork review of Shine On by Jet?
Removal of Chevron spells t-r-o-u-b-l-e for the C-A-T
Citadel Securities and the American Securities Association are suing the SEC to limit the Consolidated Audit Trail, and their case may be aided by the removal of a key piece of the agency’s legislative power earlier this year.
After acquisitions, Exegy looks to consolidated offering for further gains
With Vela Trading Systems and Enyx now settled under one roof, the vendor’s strategy is to be a provider across the full trade lifecycle and flex its muscles in the world of FPGAs.
Enough with the ‘Bloomberg Killers’ already
Waters Wrap: Anthony interviews LSEG’s Dean Berry about the Workspace platform, and provides his own thoughts on how that platform and the Terminal have been portrayed over the last few months.
