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Fidelity Adds 13 New Trading Partners
To CrossStreamSM and DarkSweepSM to Expand Liquidity Reach
BOSTON, November 29, 2007 -- As part of its ongoing effort to help its clients improve their execution quality by providing access to one of the industry's largest pools of liquidity, Fidelity Capital Markets Services today announced that it has expanded its liquidity aggregation network with the addition of 13 new trading partners to its DarkSweep and CrossStream platforms. In addition to accessing the aggregated liquidity of Fidelity's brokerage businesses, with nearly $2 trillion in assets and $3 billion of equity trading per day1, clients can now leverage the combined liquidity of 17 third-party firms.
Nine new trading venues have been added to DarkSweep, Fidelity's liquidity aggregation network, including BIDS Trading, Credit Suisse, ISE Stock Exchange, Citi's Lava Technology, LeveL, Liquidnet H2O, NASDAQ and NYSE Arca. Fidelity also has linked six new trading partners to its CrossStream alternative trading system (ATS), including Credit Suisse, JPMorgan, Neovest and Townsend Analytics. These new trading partners build on existing relationships including those with Instinet and Lehman Brothers.
"Today's fragmented trading environment has made it increasingly difficult for institutions and their investors to execute large trades with minimal market impact and information leakage," said Bill Baxter, senior vice president and head of equity for Fidelity Capital Markets Services. "Delivering best execution hinges on access to the broadest network of liquidity possible. Our goal is to extend our liquidity reach, providing clients with a single point of entry into non-quoted trading venues through our electronic trading products."
DarkSweep Algorithm Helps Clients Maximize Executions
The DarkSweep algorithmic trading strategy simultaneously aggregates liquidity from exchanges' non-displayed liquidity pools and external ATSs into a single entry point, rebalancing orders to optimally source liquidity in real-time. DarkSweep only executes within the National Best Bid and Offer (NBBO), providing price improvement for the clients' trades. In addition, users are able to customize their implementation of the algorithm by specifying which destinations to access.
CrossStream Expands Client Access to Aggregated Liquidity
Extending access to CrossStream to additional external trading partners allows Fidelity's institutional clients to leverage the combined liquidity of Fidelity's brokerage business and that of the external firms. CrossStream anonymously matches Fidelity clients' buy and sell orders against the diverse order flow of Fidelity's brokerage businesses, without publishing bids and offers and before clients' orders ever hit the Street. Like DarkSweep, the platform's sophisticated order-matching logic for brokerage clients' buy and sell orders is conducted within the NBBO to help ensure quality executions with minimal market impact. CrossStream offers a range of advanced order types, including pegging and discretion, minimum execution quantity, and intermarket sweep (ISO) orders.
CrossStream is designed to offer users the ability to increase fill rates by providing access to both large, liquid securities that can be moved in bulk and a wide range of smaller, less-liquid issues that can be difficult to trade in the public markets.
"With the industry's relentless search for liquidity and best execution, it is increasingly critical that clients have access to leading alternative trading tools," said Jeff Brown, vice president, Fidelity Capital Markets Services. "As a result, we are continually investing in our aggregation technology to help clients meet these needs."
About Fidelity Capital Markets Services
Fidelity Capital Markets Services, a division of National Financial Services LLC, executes equity and fixed income trades, provides execution services in listed options and trades foreign exchange on behalf of a wide array of clients, including millions of individual investors, 1,000 institutional firms, nearly 340 correspondent broker/dealers, 3,900 registered investment advisors, bank trust and TPA clients and nearly 18 million client accounts. The firm also has full-service Syndicate and Prime Services desks. For more information about Fidelity Capital Markets Services, visit www.FidelityCapitalMarkets.com.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of more than $3.4 trillion, including managed assets of nearly $1.6 trillion as of October 31, 2007. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 24 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.
1As of September 30, 2007.
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Clearing, custody, or other brokerage services may be provided by National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC
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