Knight Capital Group, Inc. (NYSE Euronext: KCG) has announced the introduction of Knight Match Europe, a non-displayed liquidity venue for the trading of European equities. Knight Match aims to provides a, bringing together retail, institutional, algorithmic and principal order flow.
Knight Match is a broker crossing system that provides anonymous access and trade execution opportunities to seek price improvement. Knight Match Europe's differentiating feature is the presence of retail order flow, both resting and marketable, within the pool. The combination of orders originating from institutional desks and buy-side algorithms as well as from Knight's retail broker-dealer clients and Knight Link Europe's market-making flow provides increased fulfilment opportunities. Orders are executed according to a price/equal split protocol, providing a level playing field by fulfilling at the best price equally split among all matching orders, rather than simply fulfilling on a first-come, first-serve basis. Another distinguishing factor of Knight Match Europe is the various order types accepted in the venue: Limit Orders (LMT), Immediate-or-Cancel (IOC), Peg Orders (Mid- and Near-Touch).
Knight Match Europe is based on the model Knight developed for trading in the U.S. equity markets. Knight Match uses the same technology standards that support Knight's high volume, low latency trading infrastructure.