The Tradetech Daily

J.P. Morgan

J.P. Morgan

J.P. Morgan differentiates its SOR through service, research and innovation. A large team of global market structure specialists and quantitative researchers drive continuous improvements in trading logic, predictive models, real-time streaming analytics and historical pattern studies to determine the most efficient execution approach across a wide range of market conditions and execution objectives. The SOR is backed by a dedicated trading desk.

Access and algorithmic integration

Clients can access the router

through most major execution

and order management

systems as well as via direct

FIX connectivity. J.P. Morgan”s

algorithmic strategies are fully

integrated with its router.


The SOR is available in

Europe, the US and Asia. This

includes public exchanges,

multilateral trading facilities,

electronic communications

networks and the bank”s own

internal liquidity. Dark pools

are also included where

available. The SOR is

optimised to the unique market microstructure

environment of each region.

Order types and client reporting

The SOR supports a wide

range of commonly used

order types including market,

limit, iceberg/reserve, hidden/

stealth, peg, on-open,

on-close, immediate-or-cancel.

Clients are supplied with

post-trade reports that include

a wide variety of metrics to

help indicate overall execution

performance and the

distribution of routing

destinations. Reports and

analytics can be customised

upon request to meet

individual client requirements.

Data feeds

J.P. Morgan”s SOR uses

compressive real-time depth

of book market data from

major market centres utilising

direct feeds (when available),

as well as historical data.

Routing logic

The SOR is built within a

highly scalable, low-latency

environment, with headroom

for multiples of predicted

peak volume. It bases

decisions on current order book status, recent intraday

trading activity, historical

trading patterns, venue speed

and venue reliability, amongst

other elements. The router

employs heat maps and

orders are redirected based

on current market activity.

Clients are offered a

number of customisations

that can be implemented

upon request with the bank”s

service team.

Routing to lit venues is

focused primarily on lowlatency

precision tactics

optimised for price and size

improvement. The process for

routing dark orders is

concerned with a balance

(depending on situation and

client preference) of seeking

liquidity whilst avoiding

gaming and negative selection.

Stability and resiliency are

key cornerstones of the SOR,

which is based on fully

redundant, scalable and fault-tolerant


Future plans

Further improvements

around latency, number of

liquidity destinations,

sophistication of routing

strategies employed and

resiliency will be made in the

next 12 – 18 months.