Neonet
The Neonet SOR is fully integrated with both lit and dark liquidity with adaptive order routing, designed to prevent inefficient routing and maximise liquidity reach.
Access and algorithmic integration
Neonet SOR can be accessed
via any FIX compliant order
or execution management
system, FIX order routing
networks, or via the Neonet
EMS. All algorithmic
execution strategies are fully
compliant with the Neonet
SOR.
Destinations
The SOR is available in
Europe only. It connects to
Borsa Italiana, BATS Europe,
Burgundy, Chi-X, Deutsche
Borse, Eurex, NYSE Euronext,
Irish Stock Exchange, London
Stock Exchange, Madrid
Stock Exchange, Nasdaq
OMX Nordic, NYSE Arca
Europe, Oslo Stock Exchange,
Quote MTF, SIX Swiss
Exchange, Turquoise, Warsaw
Stock Exchange and Wiener
Borse. It also connects to
dark pools including BATS
Europe”s dark pool, Chi-
Delta, Irish Stock Exchange, SmartPool, Turquoise,
Nordic@Mid and Xetra
Midpoint.
Order types and client reporting
The Neonet SOR is fully
compliant with all available
order types supported by the
connected venues. Reporting
of SOR performance and
execution venues together
with market data snapshots
for each execution is available
for clients.
Data feeds
The Neonet SOR uses all
real-time, historical and
instrument reference data.
Routing logic
Internal SOR latency is far
below sub-millisecond. The
design and load balance of
the SOR prevents any
capacity limitations and
problems.
Neonet SOR considers
instrument price, available
liquidity in the instrument
traded, venue market share
and total cost of trading
when making decisions.
The primary factor is
always best available price,
followed by venue market
share, possibility of execution and cost of execution into
calculation.
Location of executions is
applied to routing strategies
for both lit and dark venues
and orders can be routed
dynamically based on new
information. Clients may
configure SOR behaviour in
discussion with Neonet”s
trading operations.
Market data and venue
access are processed and
monitored dynamically by
the Neonet SOR in order to
keep outages or incorrectly
routed orders to a minimum.
Routing strategies can be
amended intraday manually
or automatically, a feature
which provides redundancy,
e.g. by routing away from a
specific venue in case of
malfunction.
Future plans
The firm is constantly
reviewing and analysing new
liquidity pools and execution
venues for possible addition
to the Neonet SOR. In the
next 12-18 months, Neonet
will improve routing
efficiency, enhance anti-gaming
features, information
leakage prevention, statistics
and performance reporting
functionality.