Whitepaper: Adaptive Execution Platform and Smart Order Routing Use Case – June 2008

Introduction

The electronic trading market has entered into a new evolutionary phase. This shift is expressed by the change in the nature of liquidity, namely decentralization for asset classes which were  typical y organized in a centralized model, whilst creation and consolidation of electronic venues for asset classes which were traditionally OTC and voice-based. This shift also reflects investor demand for execution strategies mirroring their complex cross-asset investment strategies, and requirements for more frequent and sophisticated trading.

As in any evolutionary situation, innovation and subsequent redistribution of cards between market participants, does not come as a quiet slow incremental change, but is rather characterized by burst of new technologies and practices. This also means that buy-side and sell-side execution and technology strategy needs to be able to cope with this rapid shift.

This whitepaper will look at the driving forces behind this seismic change, our vision enabling the mid-term transformation strategy, and an implementation example.