Investment Technology Group Introduces DarkServer

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NEW YORK, NY- October 11, 2005 - Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based equity trading services and transaction research, said today that it has introduced DarkServer , a new algorithm, to its suite of algorithmic trading strategies, ITG Algorithms . The ITG DarkServer provides seamless access to liquidity sources, seeking out hidden liquidity without information leakage.

When customers trade large blocks of stock, they must contend with a market where liquidity is often fragmented among many alternative trading systems (ATSs) and electronic communication networks (ECNs). Each ATS and ECN can have differing rules and access mechanisms, causing inconvenience and delay for traders wishing to quickly and efficiently access liquidity. The ITG DarkServer offers smart routing to the ITG liquidity pools, POSIT Match™ and POSIT Now™ (formerly TriAct®), as well as to other ATSs, ECNs and ECN hidden liquidity. Hidden liquidity refers to orders that are not displayed or advertised, such as discretionary orders on the limit order books of exchanges or ECNs. Customers can decide which liquidity pools they want to access and the ITG DarkServer will route their orders, maximizing executions at the midpoint or better. In addition, shares sent to the ITG DarkServer are never displayed in the market.

"DarkServer is an example of ITG's comprehensive approach to creating sophisticated tools for automated execution. Not only does DarkServer help our customers to find liquidity efficiently, it also allows them to maintain control over where their orders are sent," said Tony Huck, ITG's Managing Director and Co-Director of Sales and Trading.

Clients can choose from three DarkServer variations: DarkServer ATS, DarkServer ECN and DarkServer Float. DarkServer ATS gives customers the option to customize the algorithm, specifying which ATSs they want their orders exposed to. Customers can expose their orders to POSIT Now, POSIT Match, and other ATSs. DarkServer ECN uses ATSs and immediate or cancel (IOC) orders to search for hidden liquidity in ECNs. DarkSever Float uses ATSs, ECNs and passive orders to earn the spread.

ITG's comprehensive approach includes tools for pre-trade modeling, automated execution and post-trade performance measurement. All ITG algorithms take advantage of the vast, low-cost liquidity available through ITG's POSIT crossing systems.

About ITG

Investment Technology Group, Inc. (ITG), is a specialized brokerage firm that partners with clients globally to provide innovative solutions spanning the entire trading process. A pioneer in electronic trading, ITG has a unique approach to trading that combines pre-trade analysis, trade execution, and post-trade evaluation to provide continuous improvements in trading and cost efficiency. The firm is headquartered in New York and maintains offices in North America, Europe and the Asia Pacific regions. For additional information, visit

In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions in the United States and elsewhere; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and other documents filed with the Securities and Exchange Commission and available on the company's web site.

ITG Contacts:

Maureen Murphy
Investor Relations
(212) 444-6323

Alicia Curran
Media Relations
(212) 444-6130

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