SOURCE: Pipeline Trading Systems

November 19, 2007 16:37 ET

Pipeline Leads Competition in Block Execution Quality - Elkins/McSherry

Latest Institutional Transaction Cost Data Shows Money Managers Achieve Best Block Prices Using Pipeline

NEW YORK, NY--(Marketwire - November 19, 2007) - The eleventh annual survey of global transaction costs conducted for Institutional Investor by New York research firm Elkins/McSherry concluded that institutional traders receive the best prices among block ATSs using Pipeline Trading Systems LLC. Elkins/McSherry analyzed NYSE-listed results from 1,100 money managers, at 1,900 brokerages and ATSs worldwide to determine which firms do the best job of minimizing costs. Comparing all brokers and ATSs to the volume-weighted average price benchmark, Pipeline's performance was 11.7 basis points better than average -- the best among block trading ATSs.

"When predators take advantage of a large institutional order, the result is poor price performance compared to contemporaneous tape prints," said Fred Federspiel, President, Pipeline. "This report validates the Pipeline community's approach to 'predator-proofing' block trading. Pipeline clients successfully minimize information leakage, and the inevitable price manipulation that results. When you can find that giant natural contra without showing your intent, you are going to win."

The Elkins/McSherry study reports on trader success prior to Pipeline's launch of the Algorithm Switching Engine. The Switching Engine uses world-class predictive technology to execute client orders -- even in the absence of giant natural liquidity -- with the absolute minimum information leakage, and with the corresponding minimum slippage against arrival price.

About Pipeline Trading Systems LLC

New York City-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 its network and systems availability and reliability have 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 FINRA and SIPC. For more information, visit

Contact Information

  • Contact:

    Brian Holland
    Pipeline Trading Systems LLC
    Email Contact

    Bill Haynes
    BackBay Communications
    Email Contact