Recent market structure changes within the U.S. equities markets have created a breeding ground for alternative trading venues and a fragmented marketplace. According to a March 2008 report released by the Tabb Group, percent of volumes traded on public exchanges are declining. With volumes climbing off-exchange, it is important for firms to have access to as many sources of liquidity as possible. This helps to ensure that firms are able to receive the best price and fulfill best execution requirements.
Knight Link will provide users of the Brass platform, which includes an order management system and direct market access capability, with the option to interact with Knightâs deep pool of off-exchange liquidity by sending Immediate or Cancel (IOC) orders before turning to the displayed markets. As a result, customers can leverage Knightâs liquidity for order executions in more than 6,000 securities, often in small-caps and hard-to-trade names. Knight Link will also help Brass customers reduce market impact and lower execution costs.
"We are very pleased to be working with SunGard and look forward to providing its customers with access to a new source of deep liquidity," said James P. Smyth, executive vice president, Knight Capital Group. "Knight Link will help Brass customers gain access to higher fulfillment rates, rapid response times and quality trade executions."
"Rapid access to liquidity will continue to be one of the defining characteristics of the leading broker dealers throughout 2008,â said Satish Mujumdar, chief operating officer of SunGardâs Brass business unit. âBy working with Knight we can offer our customers additional tools to help them reduce operating expenses through a reduction in exchange fees, to access deeper liquidity and to grow their business.â