Credit Suisse to launch Light Pool trading platform

13 January 2011

A unit of Swiss investment bank Credit Suisse is to launch a Light Pool trading platform by the end of March this year.

The new stock market is expected to be the first electronic communications network (ECN) set up in the US for more than five years, Bloomberg reported.

Institutional investors such as hedge funds, mutual and pension funds are thought to be the target of the new platform rather than high frequency traders.

Dan Mathisson, head of the firm’s electronic trading unit, told Bloomberg: “There’s a real need for a new kind of displayed market where all the rules are set with long-term investors in mind.

“Our idea is to forego that chunk of the market and create a niche market with rules aimed at long-term investors.”

The Light Pool is expected to split traders into different categories based on their trading behaviours and discourage investors from indulging in high frequency trades.

Meanwhile, Credit Suisse announced plans to defer bonus pay outs and make payments in shares as part of a bid to increase transparency and deflect public criticism surrounding supposed excessive bonus payments.

By Jim Ottewill

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