Cambridge, Mass. and Chicago, Ill.âJanuary XX, 2003 âonExchange, Inc., a leading provider of comprehensive clearing and transaction processing technology, and Future Dynamics, a leading provider of electronic trading and exchange connectivity software, today launched LINQX, an intelligent order routing platform which supports best execution for single stock futures.
The single stock futures market, in which similar products trade on different exchanges, presents best execution and offset challenges for securities broker/dealers, futures commission merchants (FCMs), and prime brokers. These market participants will use LINQX to facilitate best execution, price improvement, liquidity enhancement, and offset for their customers.
"We will use LINQX immediately to get best execution for proprietary trades and to consolidate liquidity," said Jon Peabody, President, Rock Island Index Trading, a leading equity market maker. "LINQX will enhance coordination of our arbitrage and in-house market making activities on public markets."
LINQX couples onExchangeâs matching engine with Future Dynamicsâ exchange gateway capabilities. Firms using LINQX can provide their customers with a selection of best execution protocols, including best price, specific venue, or more complex best execution criteria.
The system facilitates price improvement and liquidity enhancement by dealers for the benefit of their customers on a fully documented basis. In addition to providing routing and execution capabilities, the system is designed to capture regulatory reporting data.
onExchange and Future Dynamics will be marketing LINQX to firms seeking to expand their single stock futures volumes, especially those with prime brokerage operations handling block trades and undirected equity order flow.
"onExchangeâs next-generation trade matching engine, combined with Future Dynamicsâ leading electronic routing and exchange user interface, will offer the first comprehensive, integrated package to handle complex execution logic and order routing in these new products," said Richard Jaycobs, CEO, onExchange. "The solution will enable broker/dealers and FCMs to provide the best possible trade execution for their clients."
"LINQX is the first real-time, smart order routing best execution solution for securities futures," said Steve Grob, CEO, Future Dynamics. "This system will provide best execution functionality for these products, including greater flexibility to offset existing positions, which is a stated desire of many current and prospective market participants."