UBS offers a highly scalable,
low-latency SOR with
advanced intelligence and
global access to displayed and
non-displayed trading venues.
Access and algorithmicintegration
UBS Direct Execution clients
can access the SOR via its
electronic trading offering,
which includes algorithmic
trading strategies and DMA.
Destinations
Smart order routing is
currently available in: the US;
Canada; Brazil; all major
EMEA markets including
Hungary, Poland, the Czech
Republic, Turkey, Israel and
Greece; and Japan.
The SOR is specifically
tailored to the regulatory and
market specific requirements
of each venue.
Order types and clientreporting
The SOR supports all UBS
DMA and algorithmic
strategy orders, in addition to
standard order types,
including hidden and pegged.
The bank offers a number of
DMA tactics that combine algorithmic logic with the
speed of a DMA order. UBS
offers historical and real-time
execution reports from all
destinations.
Data feeds
UBS utilises direct market
data feeds from all major
markets, and both real-time
and historical data.
Routing logic
The SOR will first seek a
non-displayed execution
before accessing displayed
venues based on the nature of
the order and the strategy
selected. As the order
executes, routing will be
amended to reflect where
orders are being traded.
The router will seek the
optimal price/time execution
opportunities based on both
real-time market data and the
parent/order child
management provided by the
client via DMA order ticket
selection or UBS'' algorithmic
trading engine.
The SOR uses heat maps
and responds in real time to
market stimuli, adjusting its
behaviour as necessary.
Clients have the ability to
opt-out of venues and have a
variety of both back-end
defaults and individual order
management controls that
will affect the routing logic.
Venues are constantly
monitored for signs of
potential gaming or negative
selection and algorithms are
adjusted to make qualified
decisions on when and how
to access certain venues.
Each region has a primary
and contingency site and
business continuity planning
procedures within the FIX
connectivity layer, the client
order management system
(OMS) layer and market
OMS layers, that are under
continual review.
Future plans
UBS is constantly performing
analysis on electronic orders
in order to update and
improve trading strategies
and tools.
UBS plans to extend the
use of its SOR to Hong Kong,
Australia, Singapore, Korea,
Taiwan, India, Malaysia,
Indonesia, Mexico and the
Dubai International Financial
Exchange.