SOURCE: Pipeline Trading Systems

May 24, 2010 09:12 ET

Pipeline Announces Liquidity Builder -- The First Multi-Asset Liquidity Aggregation System for Buy-Side Equity Traders

A Pipeline Exclusive -- Offered to Buy-Side Traders as an Opt-in Feature -- Uniquely Sources Small Order Liquidity From Cash Equity and Options Markets Into Single Blocks of 10,000, 25,000, 100,000 and 250,000 Shares of the Underlying Equity Securities

NEW YORK, NY--(Marketwire - May 24, 2010) -  Pipeline Trading Systems LLC, a leading electronic brokerage for institutions, announced today the deployment of Liquidity Builder, a new service that monitors liquidity across multiple cash equity and options markets, and predicts the availability of Pipeline-qualified large blocks. The aggregated small order liquidity is offered at the NBBO in Pipeline-sized blocks of the underlying equity security.

"Institutional traders are always looking for more block liquidity. As high-frequency trading increases, and the options markets become more automated, we want to be able to tap this liquidity when it can help us reduce transaction costs for our investors," said Dennis Fox, of Munder Capital Management. "Pipeline's new Liquidity Builder helps us access that liquidity on our terms: the liquidity is brought to me and I can choose to react to it or decline if the timing/price is not right."

"With this new service, we can now help our institutional customers uncover fragmented liquidity across multiple cash equity and options markets that can be aggregated into large blocks and immediately captured at the NBBO," said Fred Federspiel, CEO of Pipeline. "Our experience interacting with high-frequency trading in the Algorithm Switching Engine and our acquisition of 3D Markets' assets have made this service possible. We're uncovering a treasure trove of information behind the fire hose of quote and trade data, in both equity options and the underlying assets."

Pipeline's Block Market™, with Liquidity Builder and Contra Targeting™, provides a unique array of liquidity solutions to its institutional customers, increasing the potential for large block executions when traders require them. Simultaneously, Pipeline's Algorithm Switching Engine provides a unique way to leverage algorithms with or without concurrent search for a matching block.

The new service is being offered in conjunction with an affiliate of Pipeline Trading Systems LLC which was set up specifically to experiment with technology for accessing and aggregating liquidity across multiple markets. The Pipeline affiliate packages small order liquidity into single 10,000, 25,000, 100,000, and 250,000 share blocks of the underlying equity security.

About Pipeline
Pipeline provides intelligent Transaction Cost Management to institutions intent on reducing all-in execution costs for their investors. Pipeline's proprietary system enables block traders to optimize order execution while denying competitors the information needed to take advantage of them. Pipeline is the only agency broker that combines the high probability of block liquidity with the unmatched performance of predictive switching between best of breed algorithms. The Pipeline system gives institutional traders statistically significant improvement in execution performance in today's challenging liquidity environment. As for all clients of the Block Market, the Pipeline affiliate responsible for aggregating liquidity is subject to the same price-display-time priority rules, and receives the same information about orange and yellow alerts as non-affiliates receive. Pipeline is headquartered in New York with offices in Boston, Chicago, San Francisco and London. Pipeline is a member of FINRA and SIPC. For more information, visit http://www.pipelinetrading.com.

Contact Information

  • Contact:
    Tom Corddry
    Pipeline Financial Group, Inc.
    (212) 370-8279
    Email Contact

    Bill Haynes
    BackBay Communications
    (617) 556-9982 x224
    Email Contact