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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Waters Wrap: The changing definition and perception of blockchain
Anthony says that questions of definition and perception are killing DLT projects in the capital markets—oh, and a lack of proven implementations.
BlackRock to integrate Aladdin and Preqin to create new private markets platform
CEO Larry Fink calls combining the two platforms “maybe the biggest opportunity in 10 years.”
Ace high or busted flush? Digital Asset’s mixed fortunes mirror DLT adversity
The vendor hoped to remodel post-trade using blockchain technology—and it still might—but its bumpy progress raises questions over the future of DLT in finance.
This Week: BlackRock/Preqin, Trading Technologies, FIA Tech and more
A summary of some of the past week’s financial technology news.
Adaptive’s Aeron goes live on Microsoft Azure Marketplace
The messaging software used for building bespoke trading platforms is now available on Microsoft’s marketplace, making it accessible through major cloud providers.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
Waters Wrap: CME, Google and the pursuit of ultra-low-latency trading
CME Group and Google have announced Aurora, Illinois, as the location for the exchange’s new co-location facility. Anthony explains why this is more than just the next phase of the two companies’ originally announced project.
WatersTechnology latest edition
Check out our latest edition, plus more than 12 years of our best content.