smart routing

Discussion in 'Order Execution' started by thisguy, Aug 27, 2007.

  1. thisguy

    thisguy

    Was wondering if someone could pipe in on smart routing?

    Not familiar with smart routing for equities but it seems a large number of members of this forum must be aware of the value of smart routing for intraday trading of equities.

    Does smart routing involve holding the entire orderbook from the various ECNs and trying to identify where liquidity exists at all ECNs at given levels? Will a smart routing algorithm break an order up and send individual orders to each ECN with the hope of getting fills (volume averaged) closer to a certain level than trying to hit that (volume averaged) level at one exchange?

    Does anyone use any smart routing technology? Via inet? Third party providers? Any impressions about the software and then the cost? I've been quoted $0.0040/share for Instinet services and something less than for a CS algo via one of their interfaces.

    Much thanks for your insight.