OnePipe achieves superior crossing rates through integrated exposure to more than 25 non-displayed liquidity sources
NEW YORK and GREENWICH, Conn. – Weeden & Co., LP, a full-service institutional broker, and Pragma Financial Systems, LLC, a quantitative financial software provider, today announced the launch of OnePipe, the first Optimal Liquidity Management System built to maximize efficiency and access to non-displayed liquidity among the multitude of existing passive liquidity sources, also known as dark pools.
OnePipe was developed through Pragma @ Weeden, the two firms’ joint algorithmic trading service. It is designed to provide a solution to the problem of increasing liquidity fragmentation caused by the proliferation of dark pools in recent years. OnePipe offers institutional investors access to more than 25 dark pools, crossing networks, and streaming liquidity venues from a single, integrated source that can be accessed from the trader’s desktop.
More than just an aggregator of 25-plus dark pools, OnePipe optimally allocates orders among all non-displayed venues based on both historical and trade date liquidity, without preference to destination or venue fees. OnePipe also manages the rules of each liquidity source, such as minimum share size, resting orders versus pinging, and cross times. In addition, OnePipe has strong anti-gaming logic built in and monitors every liquidity venue for execution quality.
The result is crossing rates as much as 4 times higher than average dark pool crossing rates. Clients receive a daily summary report detailing execution rates at the various venues and providing additional execution performance statistics.
“We were finding that as the dark pool universe grew, our clients were having problems accessing liquidity efficiently and in an intelligent manner,” said Douglas Rivelli, Managing Director at Weeden & Co. “They were targeting a small number of destinations with the highest crossing rates but missing liquidity at smaller destinations because monitoring every venue was becoming too difficult. We wanted to develop a solution that would expose client orders to the greatest number of passive liquidity sources to give them the greatest chance of trading large blocks with minimal market impact.”
“Dark pools serve an important and beneficial function in our markets, which has led to their proliferation,” said Lee Maclin, Director of Research at Pragma Financial Systems. “The role of OnePipe is to defragment that liquidity and ensure that traders are able to take full advantage of the liquidity present in all of these non-displayed venues.”
About Weeden & Co., LP (
www.weedenco.com):
Greenwich, Conn.-based Weeden & Co., LP is a full-service institutional broker specializing in the execution of difficult-to-trade equities and providing equity trading and independent research to institutions worldwide. Founded in 1922, it is a FINRA, Nasdaq and SIPC member firm with offices throughout the United States: Boston, Chicago, Greenwich, Minneapolis and San Francisco.
About Pragma Financial Systems LLC (www.pragmafs.com):
New York City-based Pragma Financial Systems, LLC is a leading developer of quantitative financial systems, including optimal execution and algorithmic trading, crossing network, portfolio optimization, and risk management systems. Founded in 2002, Pragma's clients include brokers, hedge funds, and traditional asset managers.
For additional information, contact:
Marc Weinstein, Spring, O’Brien & Co.
at (212) 620-7100, ext. 216, marcw@spring-obrien.com
