Liquidity
The UBS Liquidity Network, our internal liquidity pool, gives you access to the deepest, natural liquidity in the industry.
There are eight billion shares of retail and institutional orders flowing through our systems each week, giving us the power to cross a high ratio of orders with minimal market impact. Trading so many stocks gives us an enormous amount of information from which we can extrapolate and learn; we are in a unique position with the ability to continually update and improve our execution methods.
UBS is number one by market share on the New York Stock Exchange and Nasdaq in Exchange Traded Funds and on all the stock exchanges across Western Europe in aggregate. This results in a significant percentage of our client orders being crossed internally, constituting an enormous price improvement for our clients while minimizing market impact.
Natural crossing is maximized whether you access our electronic offerings directly or through our trading desks and results in significant advantages to your execution performance. It is one of the top reasons clients give for trading through us. While global in scale, it is designed to complement each region's distinct trading requirements.
For example:
In the US, daily executions on UBS-PIN (the UBS Price Improvement Network offering clients anonymous access to UBS's retail flow) are two times greater than all other combined liquidity pools. UBS-PIN allows customers to access our liquidity through all of our execution channels from Direct Market Access (DMA) and Algorithms to Sales and Portfolio Trading.
In Japan and Australia, in addition to automated crossing within DMA and algorithmic trading, UBS allows clients to post an order on the floor and never miss an internal crossing opportunity at UBS through our queue jumping and mid tick facilitation services. With an internal liquidity pool behind each of our execution streams, it is complementary rather than competitive. In other words, we are actively seeking external liquidity while offering our clients the advantage of internal liquidity.
Please note: the trading tools we offer clients do not hold up orders in the hope of crossing them internally and at the expense of external liquidity.