Global investment banks Lehman Brothers and Credit Suisse have announced the successful linkage of their US equities dark pools.
Lehman’s LX pool and Credit Suisse’s AES CrossFinder dark venue have previously achieved a daily volume of 300 million shares, representing 20% of the total flow of US equity dark pool volume, according to research firm Tabb Group.
The two firms claim the partnership will help the buy-side to address the challenge of locating liquidity in a fragmented market.
Dmitri Galinov, director of Advanced Execution Services (AES), Credit Suisse, recently told theTRADEnews.com that the firm has been “very aggressive” in pursuing dark pool links with other brokers. Today’s announcement takes the number of CrossFinder dark pool partnerships to 27. There are estimated to be over 40 US dark pools.
“It is becoming ever more important for clients to incorporate all available pools of on-displayed liquidity into their workflow to achieve the best possible execution,” said Frank Troise, managing director and head of electronic trading products, Lehman Brothers. “Linking Lehman Brothers’ LX and AES CrossFinder has been incredibly successful in terms of delivering one of the largest pools of available liquidity to our clients.”