Bats Exchange, an innovative and technology leading U.S. securities exchange, announces the release of its Dart smart routing strategy effective Friday, Dec. 12, changing the Bats' default strategy for routable orders to DART+CYCLE.
Dark Anonymous Routing Technique (DART) will route member orders to participating dark liquidity partners (DLPs) after hitting the BATS book and before routing to protected markets using CYCLE.
DART is separate and distinct from BATS' existing Dark Scan order type, which accesses publicly disclosed DLPs before accessing the BATS book.
"As with other routing solutions and order types, the implementation of DART is driven by customer demand," said BATS chief operating officer Chris Isaacson. "Routing to dark venues as a first step in our standard routing strategy, where price improvement and lower access fees can be passed along to our members, is a significant advantage for BATS customers.
"With DART, Dark Scan, and CYCLE, we offer a comprehensive solution in executing marketable orders," Mr. Isaacson said.
Members will be charged $0.0020 per DART share filled at DLPs, a significant savings.
To opt out of the DART routing strategy, routing members can contact BATS' Trade Desk or their account manager.
BATS unveiled its CYCLE smart routing strategy in May 2008.