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ITG's POSIT Blocks Broker Algos

Traders Magazine, December 2007

Nina Mehta

Investment Technology Group, for the second time, has banned broker-dealers from accessing its POSIT crossing system via algorithms. Citing a desire to increase the average execution size in POSIT, ITG said broker algos could no longer send flow into POSIT on behalf of buyside firms. Institutions must now access POSIT directly or through ITG's algos. Chris Heckman, ITG's co-head of sales and trading, told customers in a Nov. 1 email that crossing systems "dominated by small orders with short durations and small execution sizes perform poorly.We must reverse this trend." He said POSIT's executed orders from sellside algos were one-tenth the average size of executions in POSIT.

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