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January 13, 2009

OnePipe Adds Exchanges

By James Ramage

First, technology vendor Pragma Financial Systems and broker Weeden & Co. collaborated to create an aggregation tool, OnePipe, to help institutional traders source liquidity in the un-displayed markets faster. Now, with OnePipe Plus, the two firms include the displayed markets, as well.

While OnePipe Plus does everything the earlier product does, it also answers traders' calls for a tool to broaden their liquidity possibilities during the intense volatility. Plus will go out into the displayed and non-displayed markets with varying levels of aggression that users can set-more than 40 different destinations altogether.

The first level checks the non-displayed markets, and the displayed markets to a small degree, said David Margulies, director of algorithmic sales at Weeden & Co. The second level ratchets up the frequency of open-market sweeps. The third hits the open market as frequently as necessary to complete an order within a time frame, he added.

Like its dark-only brother, OnePipe Plus relies on historical and real-time information, Margulies said, for the highest probability of getting a fill.

"Given market volatility, we've seen a dramatic shift to more liquidity-seeking strategies, and less across-the-day, VWAP, TWAP-type strategies," Margulies said.

OnePipe Plus helps those who don't have the time to spread an order across a day when the market is rising and falling 200 points at a time, he added.

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