Profile: Investment Technology Group Inc (ITG)
23 Feb 2018
Investment Technology Group, Inc. (ITG), incorporated on March 10, 1994, is a financial technology company that helps brokers and asset managers improve returns for investors around the world. The Company operates through four segments: U.S. Operations, Canadian Operations, European Operations and Asia Pacific Operations. These four operating segments provide categories of products and services, such as Execution Services, Workflow Technology and Analytics.
Execution Services includes self-directed trading using algorithms, smart routing and matching through POSIT in cash equities (including single stocks and portfolio lists), futures and options trading and portfolio trading and high-touch trading desks providing execution expertise. Workflow Technology includes trade order and execution management software applications in addition to network connectivity. Analytics includes tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance; portfolio construction and optimization decisions, and securities valuation. The Company's subsidiaries include ITG Inc., AlterNet Securities, Inc. (AlterNet), ITG Derivatives LLC (ITG Derivatives), ITG Canada Corp. (ITG Canada), Investment Technology Group Limited (ITG Europe), ITG Australia Limited (ITG Australia), ITG Hong Kong Limited (ITG Hong Kong), ITG Software Solutions, Inc. and ITG Solutions Network, Inc.
ITG execution services includes self-directed trading by clients using algorithms and smart routing for cash equities, futures and options, as well as matching in cash equities through POSIT, its Alternative Trading System (ATS). ITG execution services also provide execution expertise through portfolio trading and single stock trading desks. ITG's algorithms and Smart Order Router offer portfolio managers and traders a way to trade orders from its Execution Management Systems (EMS) or its Order Management System (OMS) and third-party trading platforms. ITG's algorithms help users pursue execution through two suites: ITG Single-Stock Algorithms and ITG List-Based Algorithms. Smart Order Router offers a solution for routing trades that can help capture liquidity with a combination of speed and confidentiality. These routers continuously scan markets for liquidity with an emphasis on trading without displaying the order.
POSIT provides anonymous continuous and scheduled crossing of non-displayed (or dark) equity orders and price improvement opportunities within the National Best Bid and Offer (NBBO). ITG has also developed versions of POSIT for trading United States corporate bonds (POSIT FI) and foreign exchange (POSIT FX). POSIT Marketplace provides access to POSIT liquidity, the dark pools of other ATSs, and certain exchange dark order types. POSIT Marketplace is a dark pool aggregator that provides clients with access to a range of non-displayed liquidity destinations.
ITG Derivatives provides electronic listed futures and options trading, including algorithmic trading and direct market access. ITG Derivatives offers options features for traders employing volatility-neutral or delta-neutral strategies and also provides low-latency application programming interfaces. ITG provides single-stock and option sales trading, as well as portfolio trading for institutional clients. ITG offers administration and consolidation of client commission arrangements across a range of its clients' preferred brokerage and research providers through Commission Manager, a multi-asset, and Web-based commission management portal.
Workflow Technology includes execution management and order management, ITG Net, requests-for-quotes (RFQ)-hub and Single Ticket Clearing. EMSs are designed to meet the needs of a range of trading styles. Triton is ITG's multi-asset and broker-neutral EMS, which brings a complete set of integrated execution and analytical tools to the user's desktop for global list-based and single-stock trading, as well as futures and options capabilities and a fully integrated and supported financial services communications network (ITG Net). Triton Derivatives is a broker-neutral, direct-access EMS that provides traders with access to multi-asset trading opportunities. Its OMS combines portfolio management, compliance functionality (ITG's Compliance Monitoring System), and a fully integrated and supported financial services communications network (ITG Net) with a consolidated, outsourced service for global trade matching and settlement (Trade Operations) that provides connectivity to the industry's post-trade utilities, as well as support for multiple settlement communication methods and a real-time process monitor.
ITG Net is a global financial communications network that provides secure, reliable and fully supported connectivity between buy-side and sell-side firms for multi-asset order routing and indication-of-interest messages with ITG and third-party trading platforms. As of December 31, 2016, ITG Net supported approximately 9,000 billable connections to more than 580 unique brokerage firms across the world. ITG Net also integrates the trading products of third-party brokers and ATSs into its OMS and EMS platforms.
RFQ-hub connects buy-side trading desks and portfolio managers with a network of sell-side market makers in Europe, North America and the Asia Pacific region, allowing these trading desks to place RFQ in negotiated equities, futures, options, swaps, convertible bonds, structured products and commodities. RFQ-hub is available as a stand-alone platform and is also integrated with Triton. Single Ticket Clearing is a broker-neutral service that aggregates executions across multiple destinations for settlement purposes.
Analytics includes trading analytics and portfolio analytics. The ITG Smart Trading Analytics suite enables portfolio managers and traders to improve execution performance before the trade happens (pre-trade) and during trading (real-time) by providing reliable trading analytics and risk models that help them perform predictive analyses, manage risk, change strategy and reduce trading costs. ITG's Transaction Cost Analysis (TCA) offers measurement and reporting capabilities to analyze costs and performance across the trading continuum. ITG provides tools to assist asset managers with portfolio decision-making tasks from portfolio construction and optimization to the enterprise challenge of global, real-time portfolio performance monitoring. ITG Opt allows portfolio managers to develop portfolio construction strategies and solve complex optimization problems.
ITG Canada provides electronic brokerage services, including ITG's algorithms and Smart Order Router, as well as high-touch agency execution, portfolio trading services and commission management services. In addition, ITG Canada provides Triton, Triton Derivatives, connectivity services, Single Ticket Clearing, ITG Opt, ITG Smart Trading Analytics, TCA and Fair Value. ITG Canada also engages in foreign exchange trading to facilitate equity trades by clients in different currencies, as well as other client foreign exchange trades unrelated to equity trades.
ITG Europe focuses on trading European, Middle Eastern and African equities, as well as providing ITG's technologies to its clients. ITG Europe provides electronic brokerage services including ITG's algorithms and Smart Order Router, and the POSIT suite, as well as agency execution services, portfolio trading services and commission management services. In Europe, ITG provides Triton, OMS, connectivity services, Single Ticket Clearing, RFQ-hub, TCA, Alpha Capture Reporting, ITG Smart Trading Analytics and Fair Value.
Asia Pacific Operations
The Company's Asia Pacific Operations includes Australia, Hong Kong and Singapore. ITG provides clients with a range of products and services, including trade execution, trade execution management through Triton, connectivity services and pre-and post-trade analysis through TCA and ITG Smart Trading Analytics. Trade execution services include electronic brokerage products, such as ITG's algorithms and the POSIT suite, as well as agency trading. ITG Hong Kong is an institutional broker-dealer focused on developing and applying ITG's technologies across the Asian markets. Other trading and analytical tools provided by ITG Hong Kong include Triton, connectivity services, TCA and ITG Smart Trading Analytics. ITG Singapore provides clients in Singapore with a range of ITG's products and services including trade execution management through Triton and trading analysis through TCA and ITG Smart Trading Analytics.
Investment Technology Group Inc
NEW YORK NY 10006-1404
Company Web Links
- BRIEF-ITG Declares Quarterly Dividend And Increases Share Repurchase Authorization
- BRIEF-ITG Releases January 2018 U.S. Trading Volumes And Provides International Trading Commission Update
- BRIEF-Investment Technology Says Co, Unit Entered Into $150 Mln 364-Day Revolving Credit Agreement
- BRIEF-ITG Releases Dec 2017 U.S. Trading Volumes And Provides International Trading Commission Update
- BRIEF-ITG Releases Nov 2017 U.S. Trading Volumes And Provides International Trading Commission Update