CREDIT Suisse is testing an innovative Light Pool trading platform in the US, and wants to create a new market for long-term institutional investors when it launches fully in March.
The platform offers an alternative to both traditional exchanges and to dark pools, where large trades can be executed anonymously.
Credit Suisse is responding to demand from its institutional customers to be able to trade on a market where they can post a visible buy-sell query without being negatively affected by opportunistic high-frequency traders. The investment bank has been developing the platform for close to a year, and is optimistic that it will attract a large amount of liquidity once it’s rolled out across all stocks.
“Clients want to be able to interact with similar-minded long-term investors,” Credit Suisse’s director of advanced execution services, Dmitri Galinov, told City A.M.
Credit Suisse already runs the biggest dark pool in the US, known as Crossfinder.