Source: Smart Trade Technologies
Smart Trade Technologies, a leader in liquidity management systems (LMS) automating MiFID- and Reg NMS-compliant best execution, today announced the launch of LiquidityOrchestrator, a highly advanced smart order router that, when combined with an aggregator, internal matching engine and connection to multiple liquidity sources within the expanding landscape of exchanges, dark pools and multi-lateral trading facilities (MTFs), empowers traders at sell-side and buy-side firms to achieve an infinite number of trading execution strategies.
LiquidityOrchestrator, a key component in Smart Trade's global release of its upgraded liquidity management system, smartTrade Transaction Platform (STTP) 5.5, intercepts incoming orders and according to predefined rules and market conditions - it has access to the depth of the external venues, the order book, fees tables, instrument preference lists and ranking of preferred venues - generates a derived set of trading instructions. Completing the improved STTP 5.5 suite are LiquidityConnect, a new, highly configurable, trading-connectivity platform; LiquidityAggregator, which combines liquidity from external and internal sources; and LiquidityCrosser, a fast, highly scalable matching engine.
"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," says Harry Gozlan, Smart Trade founder and CEO. "Aggregating and pooling different currencies, for example, is a key challenge, but gaining self-empowerment to determine if they should internalize or cross orders, then smart route them to the market as the market changes is quite another. Missing till now was a an efficient, intelligently-priced, single-vendor solution to manage liquidity, execute trading strategies and, most importantly, smart route orders for one or more asset classes across the trading room, if not across regional and global trading operations."
"Through this upgraded design, STTP 5.5 with LiquidityOrchestrator," explains David Vincent, Smart Trade's CTO, "optimizes trade execution processes within brokers, banks, ECNs and hedge funds on a single- and cross-asset basis." It virtualizes the representation of the markets in an abstracted way, in a single container, controlling the entire lifecycle of every incoming and outgoing order, enabling multiple possibilities of execution and manipulation of the workflow process of those orders."
Through STTP 5.5, traders cTTccTTP 5.5, traders can choose to utilize a personalized combination and hierarchy of how they want STTP to act when orders are received or already reside in the platform. Adds Gozlan, "rules can be provided, for example, empowering them 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."
LiquidityOrchestrator enables traders to define their rules for smart order routing (SOR), aggregation and matching, permitting an infinite combination of execution strategies and SOR possibilities to be achieved. According to Gozlan, Orchestrator leads and consolidates order flow by intercepting incoming orders and, based on instructions and predefined rules and market conditions, manages and reconciles the lifecycles of derived orders with the one from the source order. "LiquidityOrchestrator," says Gozlan "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 achieve MiFID-compliant best execution."
LiquidityAggregator combines liquidity from various external and internal sources within a single order book, drawn from streaming quotes, live resting orders, indicative prices and requests via RFQs and RFS. It allows traders to set parameters within STTP 5.5 to present a different aggregation to each end point required within an organization, based on authorization levels, prices, amount and viewable on a WYSIWYT ("what you see is what you trade") basis.
LiquidityCrosser, a fast, scalable matching engine, provides traders with the opportunity to leave the possibility of having their clients' orders matched internally. They can also create personal dark pools using matching criteria that can be reconfigured and redefined when the highest bid does not match against the lowest offer, useful for auctions-type pricing, for example, where Crosser automatically re-computes the state of the market, executing all potential transactions. LiquidityCrosser also supports various order types, execution conditions and is a full in-memory process, based on optimized numerical-calculation patterns.
LiquidityConnect, a new, highly configurable trading-connectivity platform with comprehensive connectors to various liquidity sources, connect, receives and sends messages from multiple sources using different formats and network protocols.