Selero, Inc. a leading provider of order routing networks, trade execution systems, and integration technology for the securities industry, will demonstrate its Regulation NMS (Reg NMS) compliant Inter-market Sweep Order (ISO) routing at the Securities Traders Association of Chicago Mid-Winter Conference this week (June 25-57).
While liquidity drives profit for exchanges, ECNs, ATSs, and dark pools, Reg NMS is adding new complexity to the liquidity game. In particular, market centers are proliferating, and all of them â old and new - want to attract and retain as much liquidity as possible. Toward that end, the approach of sweeping and crossing is expected to become popular, because it would allow a matching entity to send orders sized to match or âsweepâ the quotes protected by the Regulation (called an inter-market sweep) in order to cross customer orders internally.
ISO routing is Reg NMS routing with added smarts and flexibility, and Seleroâs demo is designed to present both a traderâs view and an operational view of a parallel ISO process. In addition, Selero has the ability to execute a wide array of ISO flows thanks to its flexible rules, fast connectivity, and application-on-demand capabilities (for incorporation of third party applications like algos and event stream processors), and flexibility is critical in the world of ISOs given there are multiple processes offering theoretical advantages that can only become known once the Regulation is in effect.
âToday, market centers are making educated guesses about which sweep processes will deliver the execution quality they seek, and Selero has the flexibility to accommodate their needsâ, said Fred Horn, CEO of Selero. âEven more important, though, is having the ability to refine those processes quickly, based on actual experience, and thatâs where Selero stands out among Reg NMS solution providers.â