Foregoing speed traders, Fidelity unveils BLOX dark pool
Fidelity Investments' trading arm launched a new invitation-only dark pool for block trades that allows institutional investors to interact with orders from Fidelity's brokerage business.
BLOX, short for Block Liquidity Opportunity Cross, is an alternative trading system (ATS) that lets investors anonymously trade large blocks of stock -- but it will not include high-frequency traders or broker dealers. The idea is to create a secure environment for large transactions, according to news reports.
"One of the strengths of equity market structure today is the balance of a variety of constituents. This is a piece of that overall puzzle focusing on a certain desire from a certain set of clients," Brian Conroy, president of Fidelity Capital Markets, told Reuters.
"It's something institutional clients are asking for in a world that has seen the average trade size in the average S&P Financial stock shrink dramatically in the last 15 or 20 years," Conroy said.
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