Liquidnet has released a new liquidity seeking algorithm for users operating within its dark space.
Named SmartDark, the equities algorithm is designed to enhance institutional execution by prioritising order routing to venues with larger executions and better price stability.
“Today’s markets remain volatile and complex for buy-side traders to navigate,” said Alan Polo, head of sales and trading, Americas, at Liquidnet.
“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.”
SmartDark is available in the US and incorporates a variety of yield and quality metrics to maximise liquidity exposure for traders.
The algorithm sits within Liquidnet’s Dark sphere which has an average block execution size of 28,000 shares for all trades crossed and an overall block participation rate of 44%, according to Liquidnet.
“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,” said Liquidnet’s head of global algo products, Scott Kartinen.
“We’re excited to see SmartDark aid our members in executing their orders more efficiently.”