The European arm of agency broker Instinet has announced the results of a second independent evaluation of its smart order router’s
performance for UK stocks, which show an average of 0.68 basis points in price improvement in Q2 2011.
The Q2 analysis was conducted by software and market data provider Intelligent Financial Systems and found that Instinet's European SOR found and captured the best price for UK equities 99.9998% of the time, measured by value traded. In Q1, this figure was 99.9997%. At present, there are around 17 exchanges, dark pools and alternative trading venues that offer secondary trading of FTSE 100 stocks.
The analysis also showed that Instinet's SOR – which is connected to both lit and dark markets – provided an average spread reduction of 8.2%, compared to 10% in Q1.
“We are delighted to have improved our results since IFS' last evaluation, as our SmartRouter's ability to identify and achieve the best possible price in Q2 moved to within 99.9998 percent of perfection,” commented Richard Balarkas, CEO of Instinet Europe. “We won't rest on our laurels, though; we will continue to work on the remaining 0.0002%.”
IFS used its LiquidMetrix Workstation – which provides access to a multi-terabyte, consolidated, full-depth of order book history, covering instruments traded across various venues in Europe – to monitor the performance of Instinet's European smart router.