Smart order routing

Öhman chooses Neonet suite to pre-empt demand for MTF trading

Swedish investment bank Öhman Fondkommission has signed up to use Neonet XG, a suite of technology products offered by trading solutions provider and agency broker Neonet. The firm has chosen the solution to cater for client demand for trading on multiple execution venues.

The Neonet XG

suite includes smart order routing technology, access to primary exchanges and multilateral trading facilities (MTFs), consolidated European market data, execution algorithms and Neonet XG Trader – a trading front-end.

“We are implementing Neonet XG to comply with best execution rules and to provide clients with best execution and access to a wide range of venues,” Mats Carlsson, CEO of Öhman Fondkommission, told theTRADEnews.com.

According to Carlsson, Öhman signed up for the Neonet solution in anticipation of client demand for trading on multiple venues. “There isn’t a very strong requirement from clients yet, but we think there will be. We want to be prepared for that,” he said. “It is going to be important to be able to execute at the best prices quickly, and to have very efficient back-office support.”

Öhman plans to implement the Neonet technology by the end of the year.

According to Simon Nathanson, CEO of Neonet, smart order routing is a vital part of providing best execution to the buy-side. “More and more brokers are starting to look at either developing solutions themselves or buying solutions to put themselves in a position to offer best execution,” he said. “You can’t offer best execution if you don’t reach MTFs and don’t have smart order routing.”

Nathanson acknowledged that the buy-side’s awareness of the ability to obtain better prices on alternative execution venues is growing. “There has been a slow start, but it is a good idea for banks to start looking into this now,” he said. “There will be a catch-up effect.”