NEW YORK, Jan. 18, 2017 /PRNewswire/ -- Convergex, an agency-focused global brokerage and trading related services provider, announced today that its ETF Direct platform set its new monthly trading record in December 2016 when notional value reached approximately $897 million, a 41% increase over the month of November when notional value reached $637 million. Launched in early 2016, ETF Direct is a request for quote (RFQ) platform that streamlines the process for firms requesting quotes from numerous ETF liquidity providers.
Below is an overview of key 2016 ETF Direct trading statistics:
- The average ETF Direct trade size in 2016 was $5 million in notional value and approximately 85,000 shares;
- As a percent of industry average daily volume, ETF Direct's weighted average trade size in 2016 was 69%;
- For the month of December 2016, average slippage measured vs. arrival price (midpoint) was 2.56 bps vs. an average spread of 3.38 bps, less than 1 bps from the touch.
"Convergex's ETF Direct has been filling a gap in the marketplace as the platform is helping our clients find significant liquidity in some of the traditionally less-liquid ETFs," said Eric W. Noll, Convergex President and CEO. "Not only are we seeing a dramatic increase in price improvement, we are also seeing large blocks being executed at competitive prices across a broad range of ETF products."
Key features of ETF Direct platform include:
- RFQ process providing simultaneous access to multiple liquidity providers in niche markets and sectors;
- No payment for order flow for liquidity providers;
- Complete anonymity for clients and liquidity providers;
- A comprehensive order audit trail and execution quality transparency.
Convergex is an agency-focused global brokerage and trading related services provider that takes on the industry's toughest challenges, from complicated trades to complex businesses. With clients' interests as the top priority, Convergex delivers comprehensive solutions that span global high-touch and electronic trading, options technologies, prime brokerage, clearing, commission management and beyond. Headquartered in New York with a presence in several other locations including Atlanta, Boston, Chicago, Orlando, San Francisco and London, the company serves nearly 3,000 clients accessing over 100 global market centers.
Convergex is an agency-focused global brokerage and trading related services provider. In the U.S., Convergex offers products and services through Convergex Execution Solutions LLC (member NYSE/FINRA/NFA/SIPC), of which Convergex Prime Services and Options Trading and Technology are divisions; Westminster Research Associates LLC (member FINRA/SIPC); and Convergex Solutions LLC, of which Jaywalk and LDB are divisions. In London, Convergex operates through Convergex Limited, which is incorporated in England and Wales (registered with company number 06262150). Convergex Limited is authorized and regulated by the Financial Conduct Authority (FCA) of the United Kingdom. Westminster Research Associates LLC is regulated in the United States by the U.S. Securities and Exchange Commission. Westminster provides services in Australia pursuant to an exemption from the requirement to hold an Australian financial services license under the Corporations Act 2001 (ASIC Class Order [CO 03/1100]).
Convergex provides brokerage services primarily on an agency basis, but may operate in a riskless principal and/or net trading capacity and in connection with certain ETF or ADR transactions, may act as principal or engage in hedging strategies. Convergex does not engage in market making or investment banking activities.
The material, data and information (collectively "Convergex Information") that is available from Convergex is intended for institutional investor use only; is for informational purposes only; is subject to change at any time; is not intended to provide tax, legal or investment advice; and does not constitute a solicitation or offer to purchase or sell securities. Convergex Information is believed to be reliable, but Convergex does not warrant its completeness or accuracy and Convergex assumes no duty to update such information. Clients should read their account agreement(s) and documentation with Convergex carefully as those documents contain important information and disclosures about the products or services covered thereby. Convergex is not responsible for third-party information or services, including market data from the exchanges. (Rev. 01/03/17)
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