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Liquidnet has introduced SmartDark, a new algorithm for its US equities platform aimed at institutional traders seeking improved execution of large blocks with enhanced price stability.
"Today's markets remain volatile and complex for buy-side traders to navigate. Although many algorithms in the market boast exceptional performance, the reality is that an algorithm's effectiveness depends entirely on the quality of the liquidity it can reach. SmartDark is a great illustration of our ability to develop innovative solutions for the buy-side that help traders access liquidity," says Alan Polo, Head of Sales and Trading, Americas.
The algorithm, integrated within Liquidnet Dark, employs yield and quality metrics to optimise liquidity sourcing. Liquidnet Dark currently achieves an average block execution size of 28,000 shares and a block participation rate of 44%.
"Our algorithms are one of our core differentiators and we're proud to offer a new addition to our lineup. As one of the few unconflicted, agency-only brokers with expertise in lit, dark, and block markets, we are in a unique position to craft execution strategies that effectively navigate complex markets and secure the liquidity buy-side traders need," says Scott Kartinen, Head of Global Algo Products.
SmartDark leverages Liquidnet's existing framework to provide enhanced execution capabilities through prioritised routing.
