Nasdaq acquires minority stake in US dark pool Level ATS
The Nasdaq has acquired a significant minority stake in the US-based dark equity trading platform, Level ATS.
Originally launched in 2006, Level ATS is an alternative trading system that provides a continuous crossover platform for users to trade in a dark pool environment, allowing them to minimize information leakage and impact on the market.
Existing investors in the dark pool include Bank of America, Citi, and Fidelity.
“As one of the most innovative and recognized broker-neutral trading platforms for U.S. equities, LeveL has demonstrated its ability to consistently respond to changing investor needs and serve as a significant source of liquidity. for its members, ”said Tal Cohen, vice president and head of North American markets at Nasdaq.
“We are excited to join several leading companies on the seller side to take advantage of Level’s product line and its current market position.
Unlike public exchanges, dark pools are private securities trading platforms to facilitate block trading between institutional investors who do not wish to impact the markets with their large orders and obtain unfavorable prices for their transactions. Nasdaq minority stake is the second investment made by a US-based trading platform in a dark pool operator in the past 12 months after derivatives exchange Cboe finalized its acquisition of the Canadian dark pool MATCHNow from Virtu Financial in August of last year.
Elsewhere, London-based market maker XTX Markets also launched a dark pool of US stocks in April this year and confirmed that Barclays had become one of its first broker partners.
“In a rapidly changing market landscape, our independent operating model has given us the ability to expand and expand our product and service offerings,” said Whit Conary, CEO of LeveL ATS.
“The integration of Nasdaq gives us an even broader avenue for future growth, innovation and an improved customer experience. “