"SMART" stock router - Who's the best?

Discussion in 'Order Execution' started by qazmax, May 29, 2002.

  1. qazmax


    There should be a law against firms using the phrase "smart" router. It has become so cliche. Everyone touts having smart order routing but many are just...

    1) piggybacking someone else's smart software
    E.g. alll orders go to an ECN that re-routes

    2) going through a step by step process
    E.g. 1. routes to SNET or SuperSoes, 2. if unfilled, sends to ISLD where it never moves again.

    I hear it is too hard for programmers to have the market analayzed prior to order routing, becuase it takes too long. So most firms cheat.

    Where did all the good firms go...??
  2. Just be happy that there are retail firms out there who will get you the best possible price regardless of how much it costs them to send your order there.

    Contrary to their whole slogan, I used datek when I was an "investor," and they would often route to Island (because they owned it) preferentially, even when there was a better price available. I used to have to call them and bitch for refunds when they filled me outside of the NBBO.

    But then again, datek sucks...they would also send my listed orders to island, where they would sit forever unfilled.