A crossing network is an alternative trading system (ATS) that matches buy and sell orders electronically for execution without first routing the order to an exchange or other public displayed market such as an electronic communication network (ECN). Such crossing networks are a type of dark pool that employ computerized systems to match buyers and sellers of large blocks of shares without using a stock exchange.[1] The advantage of the crossing network is the ability to execute a large block order without impacting the public quote and avoidance of market impact (i.e., the movements in a stock's price due to an investor's indication of interest).[2]
These networks are often owned and operated by broker-dealers to match buyers and sellers of large blocks of shares. Depending on the particular broker-dealer's system and the type of securities traded (e.g., exchange-listed or OTC securities), these crosses could occur at various times during the day, or after the close of trading, and could be priced at the last sale price or some other objective price, such as the midpoint between the bid and offer or the volume weighted average price (VWAP).[2]
Crossing networks tend to be used for highly liquid stocks and offer money managers the advantages of very low commissions, anonymity for the buying or selling, and avoidance of market impact. As of 2012[update], examples of crossing networks included Liquidnet, Pipeline Trading Systems, ITG POSIT and Goldman Sachs' SIGMA X.[3]
Referencesedit
^Banks, E. (2014). Dark Pool Structure. In: Dark Pools. Global Financial Markets series. Palgrave Macmillan, London. doi:10.1057/9781137449573_3.
^ abLemke; Lins (2013). "§2:26". Soft Dollars and Other Trading Activities. Thomson West.
^"SEC Charges ITG With Misleading Dark Pool Subscribers". US Securities and Exchange commission. November 7, 2018.
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crossing, network, crossing, network, alternative, trading, system, that, matches, sell, orders, electronically, execution, without, first, routing, order, exchange, other, public, displayed, market, such, electronic, communication, network, such, crossing, ne. A crossing network is an alternative trading system ATS that matches buy and sell orders electronically for execution without first routing the order to an exchange or other public displayed market such as an electronic communication network ECN Such crossing networks are a type of dark pool that employ computerized systems to match buyers and sellers of large blocks of shares without using a stock exchange 1 The advantage of the crossing network is the ability to execute a large block order without impacting the public quote and avoidance of market impact i e the movements in a stock s price due to an investor s indication of interest 2 These networks are often owned and operated by broker dealers to match buyers and sellers of large blocks of shares Depending on the particular broker dealer s system and the type of securities traded e g exchange listed or OTC securities these crosses could occur at various times during the day or after the close of trading and could be priced at the last sale price or some other objective price such as the midpoint between the bid and offer or the volume weighted average price VWAP 2 Crossing networks tend to be used for highly liquid stocks and offer money managers the advantages of very low commissions anonymity for the buying or selling and avoidance of market impact As of 2012 update examples of crossing networks included Liquidnet Pipeline Trading Systems ITG POSIT and Goldman Sachs SIGMA X 3 References edit Banks E 2014 Dark Pool Structure In Dark Pools Global Financial Markets series Palgrave Macmillan London doi 10 1057 9781137449573 3 a b Lemke Lins 2013 2 26 Soft Dollars and Other Trading Activities Thomson West SEC Charges ITG With Misleading Dark Pool Subscribers US Securities and Exchange commission November 7 2018 nbsp This finance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Crossing network amp oldid 1159246015, wikipedia, wiki, book, books, library,
