Royal Bank of Scotland
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
orders.
Destinations
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
MTF
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
orders.
The majority of RBS”s
execution strategies interact with both lit and dark venues
for optimal execution
performance.
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
Asia-Pacific.