What is pooling and netting and how does it benefit me as a client?
In short: It prevents numerous trading transactions on the stock exchange and leads to cost savings that we can pass on in full to our clients.
Before the pension assets are invested in securities or converted into currencies on the market, our intelligent algorithm first calculates all trading orders. If it is determined that two clients need instrument A and another client wants to sell the same number of the same instrument, the positions can simply be rebooked internally. Grouping all required trading orders is called pooling and settling them internally is called netting.
The cost savings are considerable: Because trading orders on the open market leads to various costs in the form of bid-ask spreads, currency conversions or statutory stamp duties.