Lehman introduces vendor access to liquidity pool

US investment bank Lehman Brothers is expanding access to its dark liquidity platform Liquidity Cross (LX) by enabling clients to route orders from third party vendor systems.

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Lehman introduces vendor access to liquidity pool

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The LX system anonymously pools together active order flow from across the European equity trading desks at Lehman Brothers with the bank's non-active inventory. Clients can access Lehman Brothers' liquidity directly on a continuous and anonymous basis, throughout the trading day, via a suite of electronic direct access algorithms. These algorithms seek liquidity based upon clients' specific requirements and risk tolerances.

The bank first introduced electronic access to LX via its proprietary trading system in April.

With Lehman's latest move, clients will be able to access LX through execution management systems from Bloomberg, BNY ConvergEx Group's Eze Castle Software, Charles River Development, Fidessa Latent Zero, ITG Macgregor XIP, Portware, RealTick, TradingScreen and Triton, as well as directly via the FIX protocol.

Lehman says direct electronic access has been developed in response of clients' increasing liquidity needs.

Earlier this month Goldman Sachs signed up nine banks to its multi-broker algorithmic trading network RediPlus. Buy-side clients can send orders to the algorithms and/or trading desks of these brokers directly from the RediPlus order entry window.

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