Thu, Nov 26, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Newedge launches Phase 2 of Smart Order Router platform for US equity options and cash equities products

Wednesday, March 14, 2012
Opalesque Industry Update – Newedge Group (“Newedge”), a global leader in multi-asset brokerage and clearing, announced today the launch of Phase 2 of their Smart Order Router (SOR) platform for U.S. equity options and cash equities products.

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.”

(press release)

Newedge, 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.


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  3. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  4. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  5. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega