Neonet, a Nordic agency broker and trading technology provider, has upgraded its smart order router technology, to provide its customers with an increased number of execution options.
The added functionality will allow clients to configure Neonet's capabilities to support aggressive (removing liquidity) and passive (posting liquidity) routing strategies on Europe's traditional and alternative markets. An increasing number of equity trading platforms
in Europe have adopted maker-taker pricing strategies that reward suppliers of liquidity and charge firms for removing liquidity.
Clients will be able to post liquidity on preferred marketplaces, avoid splitting orders and engage in several other measures to take advantage of differences in cost structures between markets. According to Neonet, these configurable strategies for aggressive and passive liquidity will allow clients to reach the highest probability of execution and control clearing and marketplace costs.
The new routing technology also includes advanced liquidity-seeking algorithms for hidden and visible liquidity across exchanges and multilateral trading facilities, with the aim of minimising market impact.
"Based on Neonet's experience from automated trading across the US and European alternative and primary marketplaces, we have taken our smart order routing technology to the next level,” said Simon Nathanson, CEO and president of Neonet. “The new functionality gives traders more options when seeking best execution across multiple marketplaces."
Neonet's smart order routing is an integrated part of the firms consolidated European order book offering that brings together the liquidity of traditional and alternative markets.