Instinet
The Instinet SOR is designed to deal with high volumes of messages with very low latency while still allowing a high degree of customer-level customisation. It relies on an in-house market data ticker plant, providing low-latency direct market data specifically designed to optimise the routing speed.
Access and algorithmicintegration
Clients can access the SOR
via Instinet”s front ends, a
range of third-party
providers or via direct FIX
connection. It is available via
all of the agency broker”s
algorithms.
Destinations
Instinet clients are able to
reach nearly all major
displayed and dark liquidity
venues in North America,
Europe and Asia.
The router is customised
to accommodate different
regional requirements such as
market data, market structure
and regulatory requirements.
Minor changes are made to cope with the different
execution venues, but the
nature of the router is highly
customisable by design, so
other changes are handled
through differences in
configuration.
Order types and clientreporting
The SOR supports limit,
market, immediate-or-cancel,
fill or kill, pegged,
iceberg, minimum quantity,
hidden, and good till
cancelled order types.
Instinet provides
proprietary post-trade
transaction cost analysis,
destination reports and
independently-verified best
order execution analysis
upon client request.
Data feeds
Instinet SmartRouter
consumes direct market feeds
for all major European and
North American markets,
and a mix of direct and
vendor feeds in Asia. The
router uses both real-time
and historical data.
Routing logic
Latency is less than one
millisecond from receiving
the order to the first order
being sent out and the
capacity is scalable.
The router bases its
decisions on price, size of
quote and latency. It employs
heat mapping and can
dynamically adjust decisions
in real time. The default
strategies in each region will
scan a selection of dark pools
to look for liquidity before
using the lit venues.
In all regions, Instinet
SmartRouter is run with hot
standbys and instant failover
in the case of any issue,
allowing it to make routing
decisions based on the
availability of each individual
market. The router also copes
with market data issues by
routing past venues with
either bad, stale or missing
quotes.
Future plans
Instinet is continually
enhancing its entire platform,
but does not disclose specific
plans for competitive reasons.