The current volume of trading in the US equities market is about 7 billion shares per day. The approximate institutional brokerage volume is estimated at one-third of the total. This volume, plus some trading by brokers, is the trading that could benefit from Magma’s platform, a total that is estimated at over 2.5 billion shares per day. Magma users will be the institutional brokers and large market-making brokers that comprise that volume.
Magma’s system is structured to benefit the market in several ways. The innovative aggregation structure can allow both liquidity providers and institutional broker-dealers to trade more efficiently. Magma aims to help both market-making firms and institutional brokers by offering a transparent way for buyers and sellers to interact. Market makers have a safer way to provide liquidity, and institutional broker-dealers can quickly and efficiently execute orders with their clients.