BNY ConvergEx has launched a global smart order router (SOR) product that offers European buy-side clients the benefits of routing technology developed in the US.
According to the US-based agency brokerage, its new European routing capability will help improve the performance of algorithmic trading strategies, increase execution speed and reduce market impact by enabling clients to take advantage of greater depth at all price points across multiple venues. The global smart router will look at orders bound for certain European markets and analyse other venues that quote or trade that same stock to identify opportunities for execution at better prices than the primary market.
Like its US router, BNYC’s global product will combine the historical price information of a stock, the level of performance within a stock and the liquidity information of each venue where it trades. The SOR will then send orders to the venue that has the best price, but will rebalance its routing priorities, depending on where liquidity starts to move.
“SOR in Europe is not so smart at the moment in many cases,” William Capuzzi, president of BNY ConvergEx Group’s G-Trade Services, told theTRADEnews.com. “Our SOR builds heatmaps around securities and doesn’t just look at historical patterns. If liquidity in a security moves to another venue, our global smart order router will dynamically rebalance.”