U.S., European and Mexican buysiders can now trade equities in size in the dark south of the border.
Agency-only broker ITG has launched POSIT Alert, a dark pool, for Mexican equities. The goal is help foster block trading in the country’s growing equity marketplace while keeping institutional investors’ intentions quiet and reducing market impact.
In Mexico, POSIT Alert allows buyside traders to anonymously cross blocks of shares on the Bolsa Mexicana de Valores (BMV) exchange, according to Eric Blake, ITG’s head of Latin America, in a release. POSIT Alert Mexico incorporates blotter sweeping technology and has a matching system that helps in the trade execution process. The actual execution is done via a midpoint dark order type on the BMV.
“The Mexican market can present challenges for the buyside in terms of sourcing block liquidity, particularly in thinner names,” Blake said. “The launch of POSIT Alert offers an efficient, cost-effective solution for trading Mexican equities.”
POSIT Alert is already available in North America, Europe and the Asia pacific region. By adding Mexico to the POSIT family, buysiders now can trade blocks in 30 countries.
In the U.S., POSIT Alert currently offers 1.1 billion shares of liquidity on a given day. The average trade within POSIT North America is 33,000 shares, compared to approximately 300 shares on U.S. exchanges, ITG said.
