Credit Suisse’s algorithmic trading unit, Advanced Execution Services (AES), has launched a new service which lets institutional clients place orders for large blocks of Australian shares with anonymity and zero information leakage.
The service, known as Crossfinder, allows clients to match orders worth a minimum of $1 million on the Australian Securities Exchange (ASX).
It also provides automatic matching of orders within Credit Suisse’s client flow that can be crossed to the benefit of both buyers and sellers and therefore create opportunities for price improvement, lower market impact and reduced exposure to the market.
“Institutions will now have an increased ability to reduce signalling their intentions to the market and have greater flexibility to move in and out of large positions,” Credit Suisse Australia head of alternative execution products Steve Davis said.
“We are always looking for ways to use technology to deliver best execution to our clients and we believe this enhancement takes us closer to realising that ambition in Australia.”
Later this month, Credit Suisse’s Crossfinder will be able to offer “mid-tick” crossing opportunities to give institutional clients more pricing flexibility, such as allowing them to buy a stock at $3.375 rather than $3.37 or $3.38.
The firm will also combine Crossfinder with AES to simultaneously work strategy orders while giving these orders access to potential $1 million block crossings.
The launch of Crossfinder comes as firms including Liquidnet, AXE ECN and Chi-X look to establish business in Australia.
