The Tradetech Daily



Alex Foster, head of UK salesEmail: +44 (0)20 7145 8844

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



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


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


Future plans

Instinet is continually

enhancing its entire platform,

but does not disclose specific

plans for competitive reasons.