Instinet

Instinet

Key features

The Instinet SOR is a low-latency, customisable,
globally deployed market aggregator. It supports all native exchange order
types as well as synthetically managing order types not supported at the
exchange. It also supports targeted strategies, meaning a client can specify
the behaviour they want on an ad hoc basis.

Instinet has fully
redundant backup systems in place, as well as multiple layers of order
validation to protect against erroneous order entry.

Instinet’s SOR capacity rates are approximately 2,000
orders per second.

Access

Clients access Instinet’s SOR via Instinet’s
Newport execution management system (EMS), direct FIX or from over 25 global
EMSs and order management systems. The Instinet SOR accesses liquidity in over
40 countries and nearly 100 venues, both lit and dark, globally. Clients are
informed of changes to strategies via contact with their sales coverage.

The SOR seeks price improvement from dark venues while
protecting against information leakage via minimum fill sizes. Lit market
orders are sent according to the liquidity available through an aggregated
depth of book. Intra-day and real-time data are used to select passive venues.

Customisation

Instinet’s SOR is fully customisable. The firm’s
analytics platform – which includes TradeSpex for portfolio construction,
Indigo for pre-trade and real-time analysis and Insight for post-trade analysis
– lets clients view their market impact and performance. Additionally SOR
performance is independently measured by third-party systems.

Future plans

Instinet expects to continue to build out its
low-latency infrastructure, anti-gaming logic and synchronised order arrival
functionality during sweeps to further improve fill rates while reducing
information leakage.