Crossing network
A crossing network or a crossing system is a fully electronic alternative trading system that enables matching customer orders to be merged with one another or customer orders against the trading participant's own stocks, excluding an external exchange . According to the definition of the United States Securities and Exchange Commission , orders without a limit are typically entered in a crossing system, which are executed at defined times at an imported price from another trading system. The execution price is z. B. the volume-weighted average price of the day (VWAP) or the current midpoint of the bid-ask spread (midpoint) imported.
backgrounds
In accordance with the MiFID provisions, it must be ensured that the customer always receives the best possible execution price. The trading participants (e.g. major banks and brokers ) can use crossing systems to save considerable costs by eliminating stock exchange trading fees and at the same time, if necessary, directly access the liquidity offered . Due to the market model (price import), execution in crossing networks is also free from market impact , so that the strategy of 'crossing' institutional orders first is advantageous for reasons of cost. Since the order book of crossing networks is usually not open, but rather hidden, most of these systems are also known as dark pools . Here come z. B. in Europe the exceptions according to §18 of the MiFID Implementation Regulation are applicable.
Well-known crossing networks are:
- Sigma X from the investment bank Goldman Sachs
- Crossfinder from the major bank Credit Suisse
- POSIT from the Investment Technology Group
swell
See also
Individual evidence
- ↑ Explanations on the amendment to the ordinance on occupational old-age, survivors' and disability pensions from April 18, 1984 ( Memento of the original from February 24, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 170 kB)
- ↑ SEC: Regulation of Exchanges and Alternative Trading Systems, Release 34-40760, footnote 37
- ↑ Naes, R. and Skjeltorp, JA 2003. "Equity trading by institutional investors: Evidence on order submission strategies," Journal of Banking & Finance (27: 9), September, pp. 1779-1817
- ↑ First proposals for MiFID pre-trade transparency waivers assessed at CESR level ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
