|
Connectivity to Two New Trading Networks Significantly Increases DarkSweep® and CrossStream® Liquidity Access
BOSTON, July 15, 2008 - Fidelity Capital Markets Services, Fidelity's institutional trading division, today announced that it has expanded its liquidity network with access to two new trading venues for DarkSweep®, Fidelity's algorithmic trading strategy, and CrossStream®, the company's alternative trading system (ATS). The new trading networks accessible to DarkSweep and CrossStream users are Goldman Sachs' SIGMA X and UBS PIN ATS.
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 day, clients can now leverage the combined liquidity of 28 third-party firms, including many of the ATSs of the top U.S. brokerage firms operating by trading volume1.
"In today's competitive environment, access to non-displayed liquidity is critical to a firm's ability to maintain anonymity and minimize the market impact of their trades," said Mark Haggerty, president, Fidelity Capital Markets Services. "By continuously expanding our liquidity network and providing clients with a single point of entry into the leading non-quoted venues, we are consistently achieving industry-leading fill rates -- including over 50 percent for clients using DarkSweep."
DarkSweep is Fidelity's algorithmic trading strategy that simultaneously aggregates liquidity from non-displayed liquidity pools and ATSs into a single entry point and rebalances orders to optimally source liquidity in real-time. It only executes within the National Best Bid and Offer (NBBO), providing
price improvement for clients' trades. In addition, users are able to customize their implementation of the algorithm by specifying which third-party venues to access.
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 are routed to the market. It 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.
Extending access to CrossStream to additional external trading counterparties allows Fidelity's institutional clients to leverage the liquidity of Fidelity's brokerage business and that of the external firms. 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.
"In today's fragmented trading environment, we believe that a philosophy of open access that seeks to aggregate as much liquidity as possible is critical to delivering best execution," said Jeff Brown, senior vice president, Fidelity Capital Markets Services. "Regardless of how our clients define execution quality, they can count on our electronic brokerage products to help them achieve their trading objectives."
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, over 330 correspondent broker/dealers, 3,800 registered investment advisors, bank trust and TPA clients and over 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 May 31, 2008. 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.
1Source: Fidelity Capital Markets Services
# # #
DarkSweep and CrossStream are registered service marks of FMR LLC.
National Financial Services LLC, Member NYSE, SIPC |
