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.
Destinations
The SOR is available in all
geographic regions where
ConvergEx supplies execution
services. This includes 34
venues in the US and 24 in
Europe.
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
needs.
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
together.
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.