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ITG To Launch POSIT Equity Crossing System for Japanese Securities

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New York and Hong Kong - June 1, 2005 - Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology based equity trading services and transaction research, today announced that beginning June 8, 2005, it will commence offshore operation of the POSIT crossing system for the matching of Japanese securities.

POSIT, the world's largest equity crossing system, matches institutional buyers and sellers anonymously and provides patented optimization capabilities for portfolio traders to manage portfolio risk characteristics. Trades cross at the midpoint of the bid/offer spread, resulting in substantial cost savings to customers. POSIT's confidentiality eliminates the unfavorable market impact that can result from trading in an open arena, which is often cited as the single largest factor in transaction costs.

"The matching of Japanese securities is a key component in our global expansion initiative and will allow ITG to further meet the international trading requirements of its customers," stated Ray Killian, ITG's Chairman, President, and CEO. "Our customers are very optimistic about the availability of POSIT for the Japanese market because it is a system they know and trust."

Initially, there will be two daily matches. The first match, at 8:15 AM (Tokyo time) will be a pre-open Volume Weighted Average Price (VWAP) based on Bloomberg's VWAP for the current day. The second match will be held during the morning trading session at 10:00 AM, and will cross securities at the mid-point of the bid/offer spread.

Customers will be able to submit POSIT orders through the Bloomberg system, FIX protocol links, and any ITG Trading Desk. POSIT is an alternative trading system owned and operated by subsidiaries of Investment Technology Group, Inc. With the addition of Japan, securities from nineteen countries* will be available for matching using POSIT technology.

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, Hong Kong, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology based equity trading services and transaction research to institutional investors and brokers, ITG helps clients to access liquidity, execute trades more efficiently and make better trading decisions. ITG generates superior trading results for its clients through three lines of business. POSIT®, the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading edge Client-Site Trading Products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit http://www.itginc.com.

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.

Contacts:

Maureen Murphy
Investor Relations
(212) 444-6323

Liz Sendewicz
Media Relations
(212) 444-6130

*Countries covered by POSIT:

Americas: United States

Europe: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom.

Far East & Asia: Australia, Hong Kong, Japan (as of June 8, 2005)

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