CHICAGO--(BUSINESS WIRE)--PDQ Enterprises, the developer of PDQ ATS (www.pdqats.com), today announced the introduction of AUCTION1, an electronic equity auction created specifically for larger sized orders. The “1” identifies the length of the auction - “up to one second.” AUCTION1 allows for the matching of orders with different latency sensitivities, thereby aggregating liquidity from a fragmented market.
An order initiated auction, through AUCTION1, can interact with passive natural liquidity, algorithmic liquidity and market maker liquidity, at the choice of the client. AUCTION1 requires a 2500 share minimum to initiate an auction and responding orders must be 500 shares or greater.
Keith Ross, CEO of PDQ Enterprises, commented, “AUCTION1 is a logical extension of the PDQ ATS up to 20 millisecond auction. During the longer timeframe PDQ can aggregate more types of liquidity to create a deeper market. PDQ’s patented process creates improved market efficiencies by allowing all participants of the trade to opt into the transaction. Similar to the current PDQ process, AUCTION1 reduces gaming, additionally AUCTION1 reduces market impact by consolidating the trade into one print at a single price.”
An AUCTION1 order is paused at the secure PDQ ATS facility for up to one second and during that time passive liquidity at PDQ, algorithmic liquidity and market making liquidity can be aggregated into a price-time auction book. After the book is created, the initiating order is traded against the newly created book, and since the responding times will vary, the length of the auction will also vary.
Pete Jenkins, PDQ ATS Managing Director, said, “AUCTION1 creates competition among the responding orders to discover the best price for a trade and the aggregation process allows for trades of larger size.”
ABOUT PDQ ENTERPRISES
PDQ Enterprises (PDQ), Inc., is the developer of the PDQ Alternative Trading System (ATS), a flexible equity trading venue that offers liquidity discovery and potential price improvement through the aggregation of an "electronic algorithmic crowd." PDQ ATS is an independent broker dealer and member of FINRA and SIPC. For additional information, please visit http://www.pdqats.com.
