Bats takes Parallel route to smart order routing
07 September 2010 | 2847 views | 0
BATS Global Markets, an innovative global financial markets technology company, today announced the launch of another major enhancement to its smart order routing services for BATS Exchange in the US, as well as for BATS Europe.
The new Parallel routing strategies aim to facilitate participants achieving best execution more efficiently while accessing multiple market venues simultaneously and cost effectively.
The first release, called Parallel D (as in "Depth of Book"), will route orders to all market centers with a quote at each price level simultaneously. Each price level will be exhausted before moving onto the next price level, even if multiple passes must be made at a price level. Parallel D is available as an optional strategy to BATS Exchange members and BATS Europe participants.
"Parallel routing dramatically enhances our smart order routing capabilities ensuring our participants have access to more choice when executing their trading strategies in the marketplace," said Chris Isaacson, chief operating officer of BATS Exchange. "By simultaneously targeting multiple market centers, our participants will have the opportunity for faster order execution and increased fill rates, minimizing implementation shortfall."
Paul O'Donnell, chief operating officer of BATS Europe, said, "In Europe this move has particular significance for our participants, enhancing the only MTF-operated pan-European smart order router that routes to both lit and dark venues."
BATS will introduce two additional parallel smart order routing strategies later this year - Parallel 2D and Parallel T. These two routing strategies will also route orders to all market centers in parallel, but Parallel 2D will focus on ensuring fastest execution for an order. Parallel T, available only in the US, will send the exact quantity of only the protected (top) quote to each market center.
Pricing for Parallel D and Parallel 2D routing will be the same competitive price as the current default CYCLE routing strategies in the US and Europe. BATS Exchange will charge $.0033/share for Parallel T.
For a complete list of routing strategies and fee schedules for BATS Exchange, please review BATS Exchange Smart Order Routing Strategies and Fee Schedule. For BATS Europe, please review BATS Europe Smart Order Routing Strategies and Pricing Schedule.
The BATS Europe smart order router is only available to clients who are Participants of the BATS Europe MTF and who are classified as Eligible Counterparties.