Indian IT firm HCL Technologies has launched a low-latency smart order router (SOR), BestXek SOR, which can route orders to execution venues in under five milliseconds under normal market conditions. The firm claims this helps users to minimise market impact and costs, and maximise spreads and rebates.
The SOR features built-in, extendable algorithms and a post-trade analytical solution, which allows users to see how an order would have been executed on other venues.
It can search for both displayed and hidden liquidity, and incorporates venue selection factors such as market impact costs and probability of execution and settlement.
“To deliver the results that trading organisations now demand, an SOR solution must be able to assimilate all information, current and past, on markets and venues, as well as consider and analyse a whole set of other factors unique to its operator,” said Pramod Gupta, head of financial services product engineering at HCL, in a statement.
BestXek connects to various markets and accepts real-time orders from order management systems via FIX. HCL says the SOR is compliant with the demands of current regulations such as MiFID in Europe and Reg NMS in the US.