Newedge, a specialist in multi-asset brokerage and clearing, has launched the latest iteration of its Smart Order Router (SOR) platform for US equity options and cash equities products, opening up the system for all users from now on in a bid to increase the amount of volume and liquidity on the system.
The platform, which was first made available in Q3 2011 for market participants who cleared through Newedge (Phase 1), provides high-speed, efficient execution by providing direct access to major options exchanges, including: International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), NYSE Amex/NYSE Arca and the Boston Options Exchange (BOX), among others.
The updated low-latency routing platform is now open to all executing market participants – including small- and mid-sized registered broker dealers, market makers, exchanges and high frequency traders, providing independent, best execution and superior price discovery claims Newedge.
"This platform scans a large, diverse amount of data and then determines the optimal destination for every order,” said Jack Boyle, senior director of financial futures and options and equities execution, at Newedge. “The SOR considers price, depth of quote, historical liquidity, fill rates, latency and price discovery, among other factors and routes the order to the venue of least cost, providing clients with the best price."
Simultaneously Newedge has also formed a Best Execution Committee, whose role will be to examine daily reports that monitor the routing logic of its updated SOR platform to ensure it is being executed properly and to respond immediately to needs of market users.