ConvergEx Introduces Dynamic IEX Order Routing Strategy After Analysis Confirms IEX Execution Quality

NEW YORK, Sept. 22, 2014 /PRNewswire/ -- ConvergEx Group, a leading provider of global brokerage and trading-related services, today announced a dynamic order routing strategy that allows clients to designate a percentage of an order to be sent to IEX, with the remainder going to ConvergEx's Darkest algorithm, which searches for liquidity among more than 20 other non-displayed venues. ConvergEx is offering this strategy after careful analysis of IEX executions showed that client orders were being successfully protected from latency arbitrage.

The Darkest + IEX dynamic routing strategy, developed in collaboration with IEX, allows clients to split their orders, explicitly routing either 25% or 50% of a trade to the IEX ATS, with the balance of the order being sent to ConvergEx's Darkest algorithm. With the Darkest + IEX strategy, if either part of the order is filled, the remainder is dynamically reallocated according to the pre-determined percentage.

"ConvergEx began routing orders to IEX in November of last year and we decided to expand our relationship after our analysis confirmed that our clients were receiving excellent execution quality in their venue," said Oliver Sung, ConvergEx Group's head of U.S. electronic execution. "With the addition of Darkest + IEX to our suite of trading strategies, we are able to provide clients with even greater control over their orders."

"IEX's market is designed to eliminate structural inefficiencies and improve trading performance. ConvergEx's data offers third-party evidence that we've succeeded in effectively eliminating latency arbitrage," said Brad Katsuyama, IEX president and chief executive officer. "The Darkest + IEX strategy provides an exciting new way to access our marketplace, and shows that ConvergEx shares our commitment to helping investors take charge of where their orders are executed."

ConvergEx's electronic clients can access IEX through the Darkest and Abraxas^SM algorithms, and high touch clients can connect to the IEX market via the ConvergEx sales trading desk.

About ConvergEx Group
ConvergEx Group is a leading provider of global brokerage and trading-related services. Its companies provide products and services in the following areas: global execution and clearing, commission management, independent research, commission recapture, options technologies, prime services and outsourced connectivity. ConvergEx Group companies do not engage in market making or investment banking, but may operate in a riskless principal and/or net trading capacity as well as in an agency capacity. In connection with certain ETF transactions requested by clients, ConvergEx Execution Solutions may act as a principal or engage in hedging strategies in connection with such transactions.

In the U.S., ConvergEx Group is comprised of ConvergEx Execution Solutions LLC (member NYSE/FINRA/SIPC), of which ConvergEx Prime Services is a division; LiquidPoint, LLC (member CBOE/SIPC); G-Trade Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); and ConvergEx Solutions LLC, of which ConnEx, Jaywalk and LDB are divisions. ConvergEx Group, LLC is a subsidiary of ConvergEx Holdings, LLC. Additional information is available at www.convergex.com.

About IEX
IEX is the first equity trading venue seeded by a consortium of buy-side institutional investors, including mutual funds, hedge funds, and family offices. Their unique ownership consortium represents a cross-section of traditional investors who are all dedicated to a fair and balanced market that works for all participants. IEX operates a fair-access platform for any qualified broker dealer, and operates on the principle of investor protection – delivered through its proprietary anti-colocation architecture and simplified pricing and rule set. Currently an Alternative Trading System, IEX recently raised $75 million to pursue registration as a U.S. national exchange.
View daily statistics and learn more at: www.iextrading.com

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Contact: Michael Kingsley
[email protected]
212.468.7713

SOURCE ConvergEx Group