This new in-house, low-latency routing platform is now open to 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. The announcement was made during the annual Futures Industry Association (FIA) conference in Boca Raton, the preeminent meeting of derivatives industry market professionals.
The platform, which was made available in Q3 of 2011 for market participants who cleared through Newedge (Phase 1), provides high-speed, efficient execution through 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.
"This platform scans a large, diverse amount of data and then determines the optimal destination for every order," said Jack Boyle, Senior Director, Financial Futures & Options and Equities Execution (FFO&E) 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."
Complementing the router's technical capabilities is a newly formed Newedge Best Execution Committee, whose role is to examine daily reports that monitor the routing logic to ensure it is being executed properly and to respond immediately to needs of market users.
During the Phase 1, the Newedge SOR averaged over two million cash equity shares and approximately 25,000 equity option contracts per day.
"Since Newedge does not operate a proprietary trading desk, the Newedge SOR will now provide all of our clients with an alternative, independent solution in which to efficiently trade cash equity and equity option products," says John Ruskin, Global Head of FFO&E at Newedge. "By opening access to more market participants with the launch of Phase 2, we believe that volume and liquidity on the platform will only increase and ultimately benefit the overall market."
Newedge (newedge.com), a 50/50 joint venture between Société Générale and Crédit Agricole CIB, is a major force in global multi-asset brokerage business, with a world-leading position in the execution and clearing of listed derivative products. With a presence in more than 20 locations in 16 countries, Newedge offers a full range of clearing and execution services covering options and futures contracts for financial products and commodities, as well as for money market instruments, bonds, FX, equities, and commodities on OTC markets. Newedge provides a range of value added services, including prime brokerage, asset financing, an electronic platform for trading and order routing, cross margining, and the centralized reporting of client portfolios. Newedge, which primarily serves institutional clients, provides access to more than 85 exchanges. Newedge's 3,000+ employees form a close-knit, multinational team that can innovatively respond to its clients in fast-moving markets. (050511N10)
Newedge Press Contacts
Richard Newman, +44 207 550 2492, richard.newman[.]newedge.com
Bill Ferri, +1 212 754 5428, bferri[.]intermarket.com
Michael Gelormino, +1 212 909 4780, mgelormino[.]intermarket.com
Damien Ryan, +852 6302 6922, damien[.]ryanfin.com