Fidessa Launches BlockShadow Service for Dark Pool Trading

Fidessa Group Plc has announced the launch of its new BlockShadow service, aimed at placing orders across various venues simultaneously, including dark markets.

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With the implementation of MiFID II, many changes had taken place across the financial services industry, including the FX space. Among the effects are constraints on dark trading, which prevent broker dealers from operating internal crossing networks.

As a result, new trading constructs such as block trading venues and systematic internalisers have been created, which have further forced market participants to monitor and operate their trading activities across many trading venues, on top of their standard sources of trading and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

Fidessa’s BlockShadow service manages the process in a centralized location, thereby making it easier for market participants to manage their trading activities.

The system aims to ensure the best possible Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of positions across several venues, as well as to prevent over-fill of orders that would exceed the desired volume. As explained by Fidessa’s statement, “when there is a match on a conditional venue, BlockShadow pauses the second ‘worker’ algo, waits for volume to be released, and then firms up on the venue concerned.”

Offering his comments on the launch of Fidessa’s BlockShadow service, James Blackburn, Global Head of Equities Product Marketing at Fidessa, said: “Competition for execution business is fierce. One of the biggest challenges for brokers in the post-MiFID II world is demonstrating their relevance, whether that is in research or in execution. BlockShadow, together with our liquidity partnership with Virtu, are just some of the new ways in which we're enabling our customers to demonstrate a clear advantage.”

As part of its development of the BlockShadow service, Fidessa worked closely with one of its longest standing clients, Redburn. The collaboration has enabled Redburn to interact with the growing number of conditional venues that have surfaced as a result of MiFID II.

Will Winzor-Saile, Execution Architect at Redburn, said: “We have always worked closely with Fidessa to ensure excellence in our execution offering and the BlockShadow capability has been an exciting addition to our technology stack. BlockShadow not only allows us to provide access to a broader spectrum of liquidity, but also means we are able to post the same block volume on multiple venues simultaneously.”

Fidessa recently made headlines with regard to a large-scale acquisition of the company by Swiss fintech ‎company Temenos, for £1.4 billion.

Fidessa performed well in 2017, posting a 7% YoY increase in revenues during 2017. The company looks to continue to develop and integrate innovative technological solutions for the financial industry in the coming years.