The Tradetech Daily

ConvergEx Group

ConvergEx Group

ConvergEx''s SOR reaches each region that it executes in and is constantly changing to accommodate new venues and exchanges. Through its agency model, the broker has no principal or proprietary order flow. The SOR incorporates advanced anti-gaming logic and it can be customised or tailored according to clients'' needs.

Access and algorithmic integration

All client order flow (through

either direct market access and/

or ConvergEx”s algorithmic

suite) takes advantage of its

SOR technology unless a client

specifically opts out.


The SOR is available in all

geographic regions where

ConvergEx supplies execution

services. This includes 34

venues in the US and 24 in


ConvergEx tests new

destinations as they become

available. Once certified and

confirmed non-toxic, it adds

new destinations to the

router and tests how they

perform, react to order flow.

Order types and client reporting

The router supports multiple

order types, but is dependent

upon the venue. ConvergEx is

willing to accommodate any

order type that is accepted in

a specific region. Post-trade

reports are sent to clients

based on their individual


Data feeds

The SOR uses both real-time

and historical data.

Routing logic

Venues are analysed by the

SOR based upon liquidity,

quality of liquidity and

functionality. Robust testing

of venue is done prior to its

launch. Other routing

decisions are based on the

strategy type of the client”s

order. Heat maps are used

but the broker and its client

have the ability to manually

override the default routing

behaviour. Orders can also be

dynamically routed based on

new information.

If a route is down or a

pre-determined number of

rejects occur within a venue,

that venue will be

automatically disabled. At that point, an alert will be

sent out so our operations

team can investigate and turn

the venue back on once the

issue is resolved.

ConvergEx algorithms use

a multi-level approach to

combat potential gaming of

orders; and a reverse price

model to decide the right

price to procure liquidity. If

an algorithm detects

potential gaming, it will stay

away from the dark all


Future plans

ConvergEx plans to roll out

additional customised logic

for our clients and is

constantly looking at

performance and our routes.

The broker frequently looks

to see if we should disable

routes based upon lack of

liquidity and/or toxicity and

constantly adds routes that

can provide “clean” liquidity.