The Tradetech Daily

Royal Bank of Scotland

Royal Bank of Scotland

Christopher BasnettEmail: ees@rbs.comTel: +44 (0)20 7678 9523

RBS SOR uses heatmapping and predictive placement logic to determine the most effective order placement strategy across multiple trading venues and maximise the likelihood of execution, with dynamic reload functionality providing instant reaction to market changes. Passive and aggressive routing come as standard, while comprehensive client profiling allows RBS SOR to determine how and where to trade based on client preferences.

Access and algorithmicintegration

By default, all client flow is

eligible for routing. RBS SOR

also determines the routing

destination for all algorithmic



RBS SOR is currently available

for European markets. These

include Chi-X Europe, BATS

Europe, Turquoise, Burgundy,

SmartPool, ITG Posit, SIX

Swiss Block, RBS Cross and a

variety of other broker

crossing systems. New venues

under consideration are UBS

MTF, Liquidnet, Nomura NX,

Equiduct, TOM and Quote


Order types and clientreporting

RBS SOR supports at market,

limit, execute and eliminate

and auction (open/close)

order types. RBS works

closely with clients to provide

reports specifically tailored to

meet their individual needs.

Data feeds

RBS SOR uses both real-time

and historical data to

determine the most effective

routing strategy.

Routing logic

Critical factors analysed by

RBS SOR include real-time

consolidated order book and

historical data, client

preferences, and venue

trading fees (only if the same

trading opportunity exists on

multiple venues). RBS SOR

employs heat maps and

orders can be dynamically

routed. Client profiling allows

RBS SOR to take into

consideration pre-determined

routing preferences on a per

venue, passive/aggressive, lit/

dark basis. Clients can also

specify whether to interact

with dark pools on strategy


The majority of RBS”s

execution strategies interact with both lit and dark venues

for optimal execution


The RBS electronic

product has comprehensive

controls in place to minimise

problems for both ourselves

and clients. The

infrastructure is designed to

provide full secondary

services, while routing can be

configured to trade without

the primary market or via

back-up brokers in the event

of market access issues.

Future plans

RBS says it is constantly

enhancing its electronic

trading capabilities to

improve performance and

adapt to the fast-changing

European trading

environment. In the next 18

months, it plans to complete

a major investment

programme in its trading

infrastructure that will

deliver a significant increase

in performance, functionality

and capacity alongside

latency improvements, and

extend SOR capabilities to