BidRoute bulk trading goes live
EUROPE - An electronic system has officially been launched which allows investment managers to place bulk order portfolio trades of 35 stocks or more on a single online platform.
Portfolio trading accounts for some 43% of all equities trades in Europe but under the new terms of the Markets in Financial Instruments Directive (MiFID) all traders are now required to give investors an audit trail of the price discovery process for transaction.
BidRoute has been launched to bridge that requirement and open the stocks trading capabilities beyond services provided by the larger dealer and broker firms, said former Gartmore COO Barry Marshall and a founding principle at the firm.
"We're aiming to help a market that is undergoing greater investor and regulatory scrutiny. BidRoute saves the dealer time, deliver transparency and demonstrates to investors that a rigorous process is in place," he said.
Under the new system, bulk trades of 35 stocks or more can be automated and performance-tracked to multiple brokers in one move, but gives investment managers and investors anonymity through its public auction service.
Moreover, Marshall also added while there is no one definition of program trading - albeit traditionally the NYSE have talked about 15 shares or more of combined total value of $1million he believes BidRoute is relevant for any portfolio trade of five shares or more.