Investment Technology Group
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Investment Technology Group, Inc. was a
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-based multinational agency
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age and
financial market A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial market ...
s technology firm aimed at a
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as s ...
and asset management clientele. One of the first suppliers of
electronic trading In finance, an electronic trading platform also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products c ...
services, ITG launched the industry’s second anonymous electronic trade matching system, POSIT, in 1987 (
Instinet Instinet is an institutional, agency-model broker that also serves as the independent equity trading arm of its parent, Nomura Group. It executes trades for asset management firms, hedge funds, insurance companies, mutual funds and pension fund ...
Cross was launched in 1986). ITG has since expanded its business to include tools for portfolio management, pre-trade analysis,
order management An order management system, or OMS, is a computer software system used in a number of industries for order entry and processing. Electronic commerce and catalogers Orders can be received from businesses, consumers, or a mix of both, depending on th ...
, trade execution, and post-trade evaluation. ITG is headquartered in
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and has offices in locations including
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, Los Angeles, Toronto, Chicago, London,
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,
Tel Aviv Tel Aviv-Yafo ( he, תֵּל־אָבִיב-יָפוֹ, translit=Tēl-ʾĀvīv-Yāfō ; ar, تَلّ أَبِيب – يَافَا, translit=Tall ʾAbīb-Yāfā, links=no), often referred to as just Tel Aviv, is the most populous city in the ...
,
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, Sydney, Hong Kong and Singapore.


History

ITG was founded in 1987 as a division of Jefferies to provide automated equity trading to institutional investors. That year, the company introduced POSIT, an anonymous electronic trade matching system, in conjunction with
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. In 1990, ITG launched QuantEX, a trading system for institutional traders integrating analytics, routing, and trade management. ITG began to provide clients with pre- and post-trade tools and analytics in 1992. ITG became a
publicly traded company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (list ...
in 1994, listed on NASDAQ. The ITG Australia office opened in 1997, giving regional investors POSIT equity crossing. The firm expanded into Europe in 1998. In 1999, ITG completed its spin-off from Jefferies, giving it full independence. In 2000, the company’s Canada office opened. In 2002, ITG moved into the
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as s ...
market by acquiring Hoenig, a provider of trade execution and
research Research is " creative and systematic work undertaken to increase the stock of knowledge". It involves the collection, organization and analysis of evidence to increase understanding of a topic, characterized by a particular attentiveness ...
services to alternative
investment fund An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages in ...
s. The firm then opened an office in Hong Kong. ITG completed its purchase of Radical Corporation, a provider of direct access trading to the institutional brokerage and hedge fund community, in 2004. The firm then opened a Japan office in 2005. The company moved to increase its
transaction cost In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market. Oliver E. Williamson defines transaction costs as the costs of running an economic system of companies, and unlike pro ...
analysis offering when it acquired Plexus Group from
JPMorgan Chase JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the ...
in 2006. That same year, ITG acquired Macgregor, a provider of trade
order management system An order management system, or OMS, is a computer software system used in a number of industries for order entry and processing. Electronic commerce and catalogers Orders can be received from businesses, consumers, or a mix of both, depending on th ...
s, for $230 million. In 2007, it acquired RedSky Financial, a developer of
futures Futures may mean: Finance *Futures contract, a tradable financial derivatives contract *Futures exchange, a financial market where futures contracts are traded * ''Futures'' (magazine), an American finance magazine Music * ''Futures'' (album), a ...
and options trading technology. In 2007 the company came under pressure from activist
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as s ...
D. E. Shaw to either sell off some of its assets or initiate a share buyback. By February 2008, Shaw had reduced its stake, citing satisfaction with ITG's RedSky purchase and an announced $50 million stock repurchase program. In 2010, ITG spun off Plexus Plan Sponsor Group, the division which serviced institutional asset owners. This group became privately held and was renamed Zeno Consulting Group. On 1 March 2019 Virtu Financial completed the acquisition of ITG.


Offerings

ITG's offerings span the following capabilities: * Portfolio Management – tools to assist portfolio managers in optimizing investment performance as well as maintaining compliance with global regulatory, client and firm mandates. * Pre-Trade – tools to manage trading
risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environm ...
, increase efficiency, and improve performance. * Trade – electronic trading services which include broker-neutral, multi-asset execution management systems (EMS) and
order management system An order management system, or OMS, is a computer software system used in a number of industries for order entry and processing. Electronic commerce and catalogers Orders can be received from businesses, consumers, or a mix of both, depending on th ...
s (OMS),
algorithms In mathematics and computer science, an algorithm () is a finite sequence of rigorous instructions, typically used to solve a class of specific problems or to perform a computation. Algorithms are used as specifications for performing ...
and routers, POSIT crossing, FIX connectivity, and traditional desk services for the trading of single stocks, lists and programs, international securities, and specialized
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as s ...
services. * Post-Trade – post-trade processing tools for trade matching, settlement notification and clearing and analysis tools for trading cost evaluation. *Trading Research - Transaction cost analysis and consulting. *Investment Research - Fundamental, data-driven equity research. *Market Research - Healthcare and telecommunications primary research. * POSIT Alert – tool that alerts traders to block crossing opportunities and delivers them directly to desktops from order flow in POSIT and ITG Algorithms.


References


External links


Official website
{{Finance links historical , name = Investment Technology Group , sec_cik = 0000920424 Financial services companies established in 1987 Companies formerly listed on the New York Stock Exchange Brokerage firms Financial services companies of the United States Companies based in New York City American corporate subsidiaries 2019 mergers and acquisitions