ITG (NYSE: ITG), a leading execution and research broker, today announced the launch of ITG Smart Limit Retail Algorithm (SLimit) a retail order-specific version of the innovative ITG Smart Limit Algorithm designed to improve passive trading performance in a highly competitive, fragmented market.
ITG SLimit Retail routes passively priced orders, using real-time and historical indicators, to maximize the exposure of the order and increase its fill chances at various NMS-protected venues. The algorithm intelligently routes orders by considering both the order book queue and the fill rate consumption at all protected exchanges. Routing decisions are made and fill rates are maximized without regard for fees/rebates. ITG SLimit Retail is available as a stand-alone algorithm within existing ITG algorithms and as part of ITG Smart Retail, a robust order routing and liquidity-seeking tool built to enhance liquidity and execution quality.
"ITG Smart Limit Retail Algorithm is our latest innovation to help retail firms better manage the dynamic nature of liquidity and continue to achieve best execution," said Dan Weingarten, ITG's Head of Sell-Side Sales and Derivatives. "By taking into account quote velocity and depth of book, SLimit provides an increased fill rate to retail investor orders, allowing them to compete for liquidity on more equal footing while maximizing the exposure of their displayed limit orders."
Since ITG SLimit logic uses historical and real-time data on average queue length and consumption rates to optimally allocate shares it is able to adapt quickly to changes in market conditions. During the first month of the NASDAQ pricing pilot ITG saw a nearly 35% increase in its fill rates at NASDAQ for stocks in the pilot group. "SLimit reacted to the real-time changes in the resting order books in the pilot stocks and the data is further evidence of the value of a dynamic routing strategy," said Phil Pearson, Director, Algorithmic Trading at ITG.
The launch of ITG SLimit Retail Algorithm builds on the success of ITG Smart Retail Router. ITG Smart Retail Router provides access to a wide range of institutional liquidity pools, including exclusive POSIT® liquidity, exchanges, ECNs, and ATSs and is supplemented by a broad wholeesaler network. Both ITG Smart Retail and ITG SLimit are a part of ITG's robust suite of Electronic Brokerage products. For more information about ITG's full range of products for broker-dealers, visit http://www.itg.com/about-itg/for-broker-dealers/ or contact us at firstname.lastname@example.org.