InfoReach Introduces RFQ Trading with Multiple Brokers

Sourcing Liquidity for ETFs by Sending Requests for Quotes to multiple brokers on InfoReach TMS

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Sep 06, 2018, 14:20 ET

CHICAGO, Sept. 6, 2018 /PRNewswire/ -- InfoReach, Inc. The latest feature on the Trade Management System (TMS) is RFQ integration for equities. This function empowers traders on TMS to reach out and source liquidity from trading partners electronically. As of this release, InfoReach had already integrated with multiple sell-side partners enabling TMS to aggregate the quotes and to host the auction. Additionally, InfoReach has integrated with partners who host auctions on their side, and is in process of adding more integrations.

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ETF liquidity has been a major topic of discussion and fear in the industry. It is often an issue that ETFs do not have a great deal of shares visible in the market. However the lit market is not the primary source of liquidity on ETF products. Because ETFs can be created and redeemed to meet demand, the liquidity is not an issue but rather sourcing this theoretical liquidity can be.

The RFQ solution offers the capability to electronically source additional liquidity from brokers on demand. Brokers are able to connect with authorized participants (APs) to have ETFs created or redeemed in order to meet the trade demands of their clients. By being able to request a quote from the broker, a trader is able to source the needed liquidity.

InfoReach takes the RFQ process even further by empowering traders to select the brokers to whom they wish to expose the RFQs, also accounting for broker restrictions. Furthermore TMS is able to handle RFQs without a side as to minimize information leakage and instead get quotes on both sides. This is all done without aggressively taking up extra real estate on the screen. RFQs can be created by simply selecting the desired parent order(s) and clicking the Send RFQ button. From there, a separate popup window is created to allow broker selection. One can then execute on the winning quote right in the blotter or trade only on the desired quotes in a separate RFQ view.

About InfoReach

InfoReach is an independent provider of multi-asset broker-neutral software solutions for electronic trading, including OMS and EMS platforms for global equities, futures, options, forex, and fixed income. InfoReach team delivers high-performance technology with high-touch support. The buy-side and sell-side client systems are tailored to accommodate current and future needs. They are configurable to deliver unique adaptations without adding development time and costs.

For more than 20 years, InfoReach has helped clients to improve their trade execution process and performance with efficient design and support of consolidated trading tools and global connectivity network.

InfoReach is a privately-held company headquartered in Chicago, with offices in New York and Amsterdam. For more information, visit www.inforeachinc.com. For announcements and more information follow us on Twitter @InfoReach and check our blog.