ConvergEx Group, LLC

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ConvergEx LLC
ConvergEx.jpg
Founded October 2006
Headquarters New York
Key People Joseph M. Velli, Chairman and CEO; Eric Noll, President
Employees 600
Website www.convergex.com/

ConvergEx Group LLC, formerly BNY ConvergEx Group, is a provider of global agency brokerage and investment technology. The registered broker-dealer specializes in derivatives execution management technology and brokerage services for listed options and equities.

ConvergEx has two dark pools, called Millennium and Vortex. The company's president, Eric Noll, said ConvergEx would relaunch Millennium by the end of October 2014 as a marketplace where orders can only be executed at the mid-point of the NBBO available on public stock exchanges, which will guarantee meaningful price improvement. The firm will relaunch Vortex in 2015 as a venue that will give different pricing levels to different market participants based on whom they want to trade with. It will cost less to trade with the more aggressive firms and more to trade with other investors. The revamping of the two dark pools is due in part to expectations of tighter industry regulations, according to Noll. [1]


History

BNY ConvergEx Group was formed in October 2006 from the union of BNY Mellon Securities Group and Eze Castle Software.[2] In November 2011, the BNY moniker was dropped, and the company became known as ConvergEx Group LLC.

From 2007-2011, the company made several key acquisitions, including options technology group LiquidPoint (2007), Cogent Consulting (2009), NorthPoint Trading Partners (2009), LDB Consulting and RealTick, a multi-broker, cross-asset provider of execution management systems which the company purchased in December of 2010 from Barclays Bank.[3]

ConvergEx filed for a $400 million IPO in May 2011 and updated the filing in June 2011, but in June 2013 the company withdrew the filing, telling the SEC it had "determined not to proceed with the offering contemplated by the Registration Statement at this time." [4]

In January of 2013, ConvergEx Holdings signed an agreement to sell its RealTick and Eze Castle software platforms to an affiliate of private equity firm TPG Capital. [5]

Technology

On September 22, 2014 ConvergEx Group announced a new order routing strategy for U.S. equities that enabled institutional clients to earmark a percentage of an order to be sent to the IEX dark pool. The remainder of the order is sent to ConvergEx's Darkest algorithm for connectivity with more than 20 other dark pools. The firm said the move was a result of analysis of IEX execution that showed that buy-side client orders were protected from latency arbitrage and from adverse price impacts. ConvergeEx began routing customer orders to IEX in November 2013.[6] [7]

Key People

References

  1. ConvergEx CEO says firm's "dark pools" being remodeled. Reuters.
  2. Our Story. BNY ConvergEx.com.
  3. ConvergEx to buy RealTick. Securities Technology Monitor.
  4. ConvergEx Pulls IPO After Two Years of Silence. The Wall Street Journal.
  5. What Does the Sale of Eze Castle, RealTick OMS/EMS Platforms Mean for the Buy Side?. Advanced Trading.
  6. ConvergEx Develops New Order Routing Strategy to IEX & Its Own Dark Liquidity Algo. Wallstreet & Technology.
  7. ConvergEx Introduces Dynamic IEX Order Routing Strategy After Analysis Confirms IEX Execution Quality. ConvergEx.