The Tradetech Daily

Citi

Citi

Citi''s Colorbook SOR uses analytic-based smart liquidity posting, has a normalised interface with child order characteristic synthesis as needed and supports sponsored broker access.

Access and algorithmic integration

Clients can access Colorbook

via direct FIX (DMA), vendor

systems, and Citi algorithms.

The SOR normalises

interfaces to all execution

venues and adapts to regionspecific

business rules as

needed.

Destinations

The Citi SOR is available in

North America, Europe and

Asia. This includes all NMS-protected

venues, the

LavaFLOW ECN, Citi Match

and other dark pools and

liquidity partners. Market

data feed handlers and

routing execution handlers

are developed as soon as

specifications are available

from new destinations.

Order types and client reporting

Colorbook supports the

following order types:

conventional order types, e.g. day and immediate-or-cancel;

probe; probe and post; sweep;

sweep and post; market;

market and post;

simultaneous and sequential

ping; ping at multiple price

levels; smart triggers to

control start/end time,

quantity, start/stop price;

dollar value risk limits; and

move to primary for open/

close/halt. A range of

different analytics can be

customised into a report

upon request for any client.

Data feeds

The router uses SIP, as well as

direct exchange real-time

depth of book feeds. Routing

decisions are based on both

real-time data and historical

statistics.

Routing logic

Routing logic is based on:

Reg NMS protection for

protected venues; best

execution price for client

order; smart order type

characteristics; pre-configured

route ranking/

preferencing; pre-configured

oversize preferencing;

analytical-based smart

posting; and pre-configured

posting preferences.

Colorbook uses heat maps to access the best source of

liquidity. Lit venues have

stronger protection in terms

of trade-through, while dark

venues are accessed via ping

processing, or if known dark

liquidity has passed through

the SOR.

Smart order types

determine how child orders

are dynamically routed based

on changes in the market and

order instructions. Posted

orders can be re-routed based

on market changes.

Clients can fully customise

the routing logic for their

order flow, according to

venue and whether to take or

post liquidity.

Extensive partitioning,

primary and backup

processes, disaster recovery

and automated and manually

initiated self-help

declarations are among the

fail-safes included in

Colorbook.

Future plans

Citi plans to make

continuous hardware

upgrades, co-location

improvements to Colorbook

in the next 12-18 months.

Furthermore, an expansion

of the order router to futures

and options is also expected.