Quod Financial, an execution technology provider, has launched a buy-side version of its Advanced Smart-Order Router (ASOR) technology. The new solution is based on Quod’s already-established sell-side ASOR product.
The new buy-side ASOR uses all the existing technology from the sell-side release, which includes the ability to adapt dynamically to changes in the market, and a set of algorithms that can address different execution policies, taking into account factors such as price, cost, latency and probability of execution.
In contrast to the sell-side version, the buy-side ASOR needs to examine which brokers to send orders to, rather than just liquidity pools. It does this using various different types of analysis, such as benchmarking brokers’ algorithms, TCA and latency. The router is also designed to determine how to direct orders in a fragmented market consisting of exchanges, MTFs and dark pools of liquidity.
The router’s combination of algorithms and trading-specific complex event processing (CEP) dynamically adjusts the execution pattern of an order against the client’s individual best execution criteria. Quod claims the ASOR is capable of providing adaptive decision making and routing, and liquidity management.
“Having successfully gained momentum in the post-MiFID sell-side advanced smart order routing space, we have been invited by leading buy-side institutions to reutilise our technology to meet a number of challenges; implementing their complex execution strategies, proactively measuring the quality and performance of their brokers and their algorithms, as well as addressing liquidity fragmentation,” said Ali Pichvai, CEO and co-founder of Quod Financial, in a statement.
He adds, “Our underlying technologies have enabled us to create a smart order router that is not only well adapted for the sell-side, but is now a viable solution for the buy-side.”