ON POINT EXECUTIONS LAUNCHES OPTIONS SMART-ORDER ROUTER AND LIQUIDITY MATCHING ENGINE
On Point Executions, an execution consulting firm providing premier equity-option smart-order routing solutions, today announced the launch of STING, its next generation options smart-order router and liquidity matching engine for options markets.
STING is a smart-order router that provides 100 percent execution quality by blasting all six regional options exchanges simultaneously to take all displayed liquidity at a given price. By hitting all liquidity at the same time rather than sweeping the markets, STING achieves higher execution quality because market-maker algorithms respond to millisecond latencies in most sweeping algorithms. With near-zero latency, STING hits liquidity before other market-maker algorithms can respond.
In addition to executing against all displayed liquidity, STING performs as a liquidity matching engine by executing against market makers’ non-displayed, depth-of-book pricing models. Because STING interacts with non-displayed liquidity, On Point is often able to achieve greater than 100 percent execution quality for its clients.
“STING offers a solution to obsolete options trading technology, which often miss opportunities to execute at the best price due to latency problems or trading systems that hold options orders hostage to liquidity at a single venue,” said John Lapertosa, co-principal at On Point Executions. “At a time when liquidity and quote traffic across all options markets is exploding, STING offers a superior execution solution that both buy-side and sell-side traders are starting to realize is an industry necessity.”
The STING smart-order router is built on an algorithm that adapts to the market in real-time based on current price movements, historical pricing data, and the quality of previous executions at any given venue. STING is FIX compliant and order management system neutral and can be easily integrated into any existing proprietary systems.