Smart Trade Technologies, a liquidity management systems (LMS) provider, has launched a new smart order router (SOR) called LiquidityOrchestrator.
The new SOR intercepts incoming orders and generates a derived set of trading instructions according to predefined rules and market conditions.
“LiquidityOrchestrator is like a market ‘maestro’ conducting and consolidating order flow, constantly reassessing the state of each of your orders based on any type of market data, helping you to achieve MiFID-compliant best execution,” said Harry Gozlan, Smart Trade’s founder and CEO, in a statement.
Smart Trade says LiquidityOrchestrator is a key component of the firm’s upgraded smartTrade Transaction Platform (STTP) 5.5 product quite. Other components of the upgraded suite are LiquidityConnect, LiquidityAggregator, LiquidityCrosser.
LiqudityAggregator combines internal and external sources of liquidity within a single order book, drawn from streaming quotes, live resting orders, indicative prices and requests via requests for quotes and requests for service. It also allows traders to set parameters within the STTP suite to present a different aggregation to each end point required within an organisation based on authorisation levels, prices and amount.
LiquidityConnect, a trading-connectivity platform with connectors to various liquidity sources, connects, receives and sends messages from multiple sources using different formats and network protocols.
LiquidityCrosser is a scalable matching engine. It provides traders with the opportunity to have their clients’ orders matched internally and allows them to create personal dark pools using matching criteria. It also supports various order types and execution conditions.
“Being required to connect to as many liquidity sources as possible to provide best execution in today’s Reg NMS and MiFID trading environments, traders are looking beyond algorithms,” said Gozlan. “Aggregating and pooling different currencies, for example, is a key challenge, but gaining self-empowerment to determine if they should internalise or cross orders, then smart route them to the market as the market changes is quite another.”
Smart Trade says traders will be able to customise how they want STTP to act when orders are received or already reside in the platform.
“Rules can be provided, empowering traders to decide to cross an order internally before sending the order to the market, setting rules to cross the order, smart route the order to the market and what the smart router should do in the event an order can be crossed internally after it has been sent to the market,” explained Gozlan.