Smart Order Routing
Smart order routing involves the ability for buy- and sell-side firms to achieve best execution of trades while minimizing market impact. In an increasingly fragmented market, firms must be able to search for hidden liquidity and icebergs, detect opportunities in dark pools and use algorithms to maximize results without moving the market.
The StreamBase Smart Order Router allows firms to successfully achieve best execution by observing and correlating events occurring across the market, detecting hidden liquidity, applying execution algorithms, and instantly routing to capture best execution opportunities.
The StreamBase Smart Order Router includes five core components:
Market Data Feed Handler
The StreamBase Smart Order Router interfaces with any market data feed, including ACTIV Financial, Bloomberg, Comstock and Thomson Reuters. It also allows you to consolidate data from multiple feeds and to filter data to focus on markets, symbols and events of interest.
Liquidity Detector
The StreamBase system has the ability to track both displayed and hidden liquidity across the market. It does so by tracking market quotes, fill rates, executions compared to displayed volume, response rates and more.
Execution Algorithms
When an order is received, the StreamBase Smart Order Router incorporates client-designed algorithms and instantly decides where to route and order, how much of the order to route to each destination, and the type of order to create for each venue. It also monitors fills and manages orders while they are open. It then routes the executions back to the source system, providing the data necessary for compliance reporting, logging and audit trails.
Smart Order Router
Based on the execution algorithm, the StreamBase Smart Order Router slices orders and selects the proper destination while maintaining compliance with order protection and best execution obligations. It also enables venue prioritization based on transaction costs and compiles orders in compliance with destination requirements.
Order Book
The StreamBase system consolidates snapshots of markets, maintains order state and matches orders and executions. It also logs order flow, tracks order lifecycle and assembles records for compliance reporting.
Full Product Download
Click here to download a full trial version of StreamBase.