SOURCE: Pipeline Trading Systems LLC

January 09, 2006 14:49 ET

Pipeline Block Trading Market Ends Year of Unprecedented Growth

Fourth Quarter ADV Rises 58%

NEW YORK, NY -- (MARKET WIRE) -- January 9, 2006 -- Pipeline Trading Systems LLC, the only continuous, auto-execution electronic block marketplace, announced today that the Average Daily Volume executed through the firm's leakproof electronic venue during the fourth quarter '05 climbed to 13.1 million shares -- 58% higher than the third quarter and over five times the ADV of the fourth quarter a year ago. During its fifth quarter of operation, Pipeline continued to establish itself as a dominant source for mega-block trades inside the spread, with unprecedented growth in daily transaction volume, participating firms and in executable block orders. Growing at a pace of over 50% per quarter, Pipeline's daily volumes have topped twenty-three million shares with average trade sizes well over forty thousand shares.

"It's pretty obvious from Pipeline's extraordinary growth that our singularly open, yet leakproof electronic block trading model is proving its value to all firms on both the buy and sell side," said Alfred Berkeley, Chairman and CEO of Pipeline. "We know of no other block trading ATS that has executed two billion shares in less than five quarters of operation."

Launched in September of 2004, Pipeline offers a unique electronic platform where block traders can enter priced orders for large blocks of stock without the fear of the predatory practices that can occur in traditional trading venues.

"As our user community has grown, Pipeline's ability to deliver hidden block liquidity has increased dramatically, while simultaneously preventing the information leakage that accompanies small trades," said Fred Federspiel, President. "More and more block traders are capturing the rewards of the leakproof Pipeline model: over ninety percent of shares are executed at or better than the best prices nationwide and the average trade size is over 100 times bigger than the leaky, repetitive small fills needed to get the job done elsewhere."

"We set out to re-invent the block market so all practitioners can achieve great executions for their clients," said Federspiel. "The terrific growth in usage reinforces our commitment to this mission."

About Pipeline Trading Systems

New York based Pipeline Trading Systems LLC is a registered broker/dealer and operator of Pipeline, an Alternative Trading System (ATS) that enables institutions and brokerage firms to quickly and efficiently trade large blocks of NYSE, AMEX, and Nasdaq listed issues, ADRs and Exchange Traded Funds (ETFs). To date, Pipeline's fill rates and the percentage of trades executing within the National Best Bid and Offer have both been strong. While Pipeline expects those trends to continue, we do not guarantee similar performance in the future. Although there has been no indication to date, high volumes, congested system access and price volatility may impede trading activities. Pipeline Trading Systems LLC is a member of the NASD and SIPC. For more information, visit www.pipelinetrading.com.

Contact Information

  • Contact:
    Brian Holland
    Pipeline Trading Systems LLC
    212-370-8326
    Email Contact