Investment Technology Group
| Company type | Public (until acquisition) |
|---|---|
| Industry | Financial technology, Agency brokerage |
| Founded | 1987 |
| Founder | Jefferies (as part of) |
| Defunct | March 1, 2019 |
| Fate | Acquired by Virtu Financial |
| Headquarters | New York City , United States |
Area served | Global |
| Products | POSIT electronic trade matching platform, portfolio management, pre-trade analytics, order management, trade execution, post-trade assessment tools |
| Parent | Virtu Financial (from 2019) |
Investment Technology Group, Inc. was a multinational agency brokerage and financial technology company based in the United States, catering primarily to hedge funds and asset management firms. As an innovator in electronic trading, ITG introduced POSIT in 1987, the industry's second anonymous electronic trade matching platform after Instinet Cross debuted in 1986. Over time, ITG broadened its service portfolio to encompass portfolio management, pre-trade analytics, order management, trade execution, and tools for post-trade assessment.
With its headquarters located in New York City, ITG maintained a presence in key financial hubs such as Boston, Los Angeles, Toronto, Chicago, London, Dublin, Tel Aviv, Madrid, Sydney, Hong Kong, and Singapore.
History
Established in 1987 as part of Jefferies, ITG developed POSIT—an anonymous trade matching system—in collaboration with Barra. The launch of QuantEX in 1990 marked the integration of advanced analytics with trading and order routing capabilities. By 1992, ITG was providing both pre-trade and post-trade analytical services to its clients.
The company went public on the NASDAQ exchange in 1994. Its international footprint grew with expansions into Australia (1997), Europe (1998), and Canada (2000). In 1999, ITG completed its separation from Jefferies to operate as an independent entity.
In 2002, ITG entered the hedge fund sector by acquiring Hoenig, which specialized in execution and research services tailored for alternative investment funds. This period also saw the opening of offices in Hong Kong (2002) and Japan (2005).
ITG strengthened its technology capabilities through several acquisitions: Radical Corporation for direct access trading in 2004; Plexus Group from JPMorgan Chase for transaction cost analysis in 2006; Macgregor for $230 million to enhance trade order management systems also in 2006; and RedSky Financial for futures and options trading technology in 2007.
During 2007, activist investor D. E. Shaw urged ITG to either divest certain assets or undertake share repurchases. Following ITG’s $50 million stock buyback initiative and acquisition of RedSky, Shaw reduced its ownership stake by early 2008.
In 2010, ITG separated Plexus Plan Sponsor Group into Zeno Consulting Group, a privately held company.
On March 1, 2019, Virtu Financial finalized its acquisition of ITG, incorporating it into a leading agency and broker-neutral business platform.
Offerings
ITG provided a range of solutions including:
- Portfolio Management – platforms designed to assist portfolio managers in optimizing investment outcomes while adhering to regulatory requirements and client or firm policies worldwide.
- Pre-Trade – tools aimed at mitigating trading risks, improving operational efficiency, and enhancing overall execution performance.
- Trade – electronic trading capabilities featuring broker-neutral multi-asset execution management systems (EMS), order management systems (OMS), algorithmic trading strategies and routing technologies, POSIT crossing network, FIX protocol connectivity, alongside traditional desk services for trading individual stocks, baskets, programs, international securities, and specialized services for hedge fund clients.
- Post-Trade – solutions focused on trade matching processes, settlement notifications, clearing functions, and comprehensive transaction cost analysis.
- Trading Research – consulting services specializing in transaction cost analysis.
- Investment Research – equity research driven by fundamental data analysis.
- Market Research – primary sector-specific research concentrating on healthcare and telecommunications industries.
- POSIT Alert – a platform delivering block crossing opportunities directly to traders’ desktops derived from order flow within POSIT and ITG algorithmic executions.