A group of asset managers recently announced the creation of Luminex Trading & Analytics, a dark pool catered to asset managers. According to the consortium’s press release, the new venue “will set target trade minimums that are significantly larger than what is currently available in the market.” According to Bloomberg, the current plan is to set the minimum at the lesser of 5,000 shares or $100,000 per order. Subscribers will set a minimum trade size when submitting an order (which is guaranteed to execute upon a match with another order), but will be given the opportunity to increase the trade size before execution. Additionally, subscribers “will also have full transparency into the platform’s user-base.” Bloomberg reports that broker dealers will not make be among the initial roster of users.
Fidelity began planning for the venue in the spring of 2014, and at that time tentatively named the platform “Sakura.” Luminex will operate independently and each consortium member will have one seat on the board of directors. The consortium is composed of BNY Melon, Blackrock, Capital Group, Fidelity Investments, Invesco, J.P. Morgan Asset Management, MFS Investment Management, State Street Global Advisors, and T. Rowe Price.