SDS Financial Technologies, a leading provider of powerful, comprehensive trading and electronic marketplace solutions for institutions, exchanges and hedge funds, today announced that they have entered into a multi-year agreement with On Point Executions LLC, an agency-only broker, to power the options industryâs most advanced execution venue, On Pointâs STING smart order-routing system. STING is available to buy-side and sell-side clients.
Built on SDS Trader technology, SDSâs next-generation direct market access trading platform, On Pointâs proprietary - STING - intelligent options routing algorithm interacts with liquidity pools with preferences defined according to best price and past performance of how the provider interacted with order flow. STING then monitors all existing market centers for execution quality and uses this information to determine the most efficient execution venues to route orders.
The STING routing algorithm uses empirical data to determine which destination will yield optimal order execution and has the ability to garner more liquidity by analyzing the intricate pricing and decision-making logic of the existing industry players to provide superior execution quality and added value to On Point customers. Execution venues that in the past have shown greater liquidity at the best price quoted enjoy a heavier weighting in the algorithm.
Unique Sweep Function Increases Execution Results
STING's unique electronic âsweepâ function can buy all posted offers or sell all posted bids in a virtual instant and ensures that customerâs orders can interact with non-electronic and electronically posted liquidity pools on multiple exchanges simultaneously. STING captures all posted and non-posted liquidity while at the same time minimizing market impact. This results in clients achieving better than expected execution quality with STING than any other industry execution offering.
STING is FIX 4.4 compliant and can be used through On Point Trader or it can be integrated into any existing front-end application.
âSTING provides a solution for obsolete technology that holds option orders âhostageâ to liquidity of a single venue at a time and we expect the demand for this evolving market facility to be incredibly high,â says Paul Carrozzo, co-principal at On Point. âNow that we have partnered with SDS Financial Technologies to offer the marketplace STING routing, we can deliver more liquidity then what the Street is offering at any given point electronically.â
âWe are pleased to work with On Point to custom-develop the STING smart order routing system as part of the On Point Trader execution platform,â says Peter Maragos, managing director of SDS Financial Technologies. âSTINGâs highly desirable capacity will serve On Pointâs buy-side and sell-side clients and play a key role in On Pointâs continued growth in the marketplace.â