ITG launches router for retail brokers
Agency broker ITG has
released a new trading tool for retail broker-dealers to access liquidity.
The firm’s new Smart Retail
Router is connected to multiple exchanges, electronic communications networks
and alternative trading systems, including ITG’s own POSIT dark pool.
The router is also connected
to a network of traditional and non-traditional wholesale market makers, which
ITG says lets brokers maximise execution quality.
Users can customise
the router’s order-handling logic and can access it via a FIX connection and
via most execution and order management systems.
“ITG Smart Retail Router is
our latest innovation to help clients realise best execution,” said Dan Weingarten,
head of liquidity management sales. “By combining ITG’s existing pool of
institutional liquidity with focused smart routing and a network of wholesale
partners, we’ve created an attractive alternative for the retail brokerage
community, in the process offering buy-side clients access to additional
sources of high quality liquidity.”
When trading retail orders in
the US, brokers typically send each trade to an aggregating broker who then offers an execution price that is equal to
or better than the national best bid or offer.
aggregator either internalises the order – either against its own order flow or
other retail client orders – or routes it to the public markets, where it is
protected under Reg NMS, which obligates trading venues to redirect orders to
another venue if it displays a better price.
ITG’s Smart Retail Router is
part of the firm's Liquidity Management platform, which comprises algorithmic
trading tools for 35 markets, its POSIT dark pool and its POSIT Alert block