by BetPro Exchange recently launched a new smart order routing system (SOR) that optimizes order execution across its global liquidity pools. This intuitive routing technology can unlock major efficiency gains for traders on the platform.
In this comprehensive guide, we’ll take a deep dive into BetPro Exchange’s groundbreaking SOR. Read on to learn how it works under the hood to drive superior trade outcomes.
Overview: Order Routing In a Fragmented Marketplace
Financial markets have become increasingly fragmented in recent years. Securities now routinely trade on dozens of competing venues simultaneously.
This creates major coordination headaches for traders. It becomes extremely difficult to identify the best available prices across multiple exchanges and ECNs in real-time.BetPro’s new Smart Order Routing is an industry game changer. By efficiently linking fragmented liquidity pools, it unlocks huge new trading opportunities.
— BetPro Exchange (@BetPro) April 7, 2022
Manual order routing efforts simply can’t keep pace with today’s hyper-complex markets. This inevitably leads to suboptimal execution and missed revenue opportunities.
This is where BetPro Exchange’s trailblazing SOR system enters the picture…
Introducing BetPro SOR: A Smarter Routing Architecture
BetPro SOR helps traders overcome fragmentation challenges through advanced routing intelligence.
Figure 1. BetPro Exchange’s global liquidity network
BetPro sources liquidity from 30+ leading exchange venues worldwide. This creates abundant trading opportunities but also tremendous coordination complexity.
SOR technology helps optimize this workflow through granular analysis of prevailing “taker” and “maker” prices across subscribing venues. This reveals optimal routing paths to secure best-priced fills.
Key Capabilities: How BetPro SOR Drives Performance
BetPro SOR capabilities include:
Real-Time Order Analysis
Using high performance analytics, the SOR engine reverse engineers desired order parameters to determine precise size/price points for sub-order routing.
Smart Venue Selection
The system interprets up-to-the-moment market data to optimize venue selection for sub-orders. This matching logic helps fill the original meta order at ideal prices.
Dynamic Execution Logic
BetPro SOR adjusts sub-order routing paths on-the-fly based on execution feedback. This fluid, data-driven approach enables ideal fills.
SOR Benefits: Why Traders Should Pay Attention
Adopting BetPro Exchange’s SOR system unlock significant benefits including:
- Lower Fees – Traders save substantially on fees by securing best-priced liquidity
- Faster Fills – Orders match quicker by tapping wider liquidity pools
- Higher Fill Rates – More liquidity exposure improves fill success rates
- Superior Prices – Optimized routing logic helps traders achieve ideal pricing
- Uptime Reliability – Multi-venue architecture prevents downtime due to one exchange’s outage
These capabilities make BetPro SOR a game changer for sophisticated electronic traders worldwide.
SOR Architecture: Underlying Technologies and Logic
A complex array of leading technologies and advanced logic underpins SOR functionality:
Sub-Components
- Machine Learning Engine – Proprietary AI models drive core routing logic
- Smart Order Parser – Deconstructs order parameters and intent
- Pricing Discovery Module – Interrogates liquidity pools to find ideal prices
- Execution Engine – Manages real-time sub-order placement/amendment
Workflow Logic
- Original order enters the system
- Smart Order Parser decodes parameters
- Pricing Discovery Module scans market data to find best-priced liquidity
- Machine Learning Engine plots optimal execution workflow
- Execution Engine routes/adjusts sub-orders to fill original order at ideal prices
- Trading platform returns filled meta order to trader
This streamlined process repeats automatically for every order entered into the SOR system.
Implementation Case Study: Leading Asset Manager
Global asset manager Merit Investments LP recently adopted BetPro SOR capabilities with impressive results:
Key Outcomes
- $1.2 million trading cost savings over 3 months
- Substantial reduction in price slippage on larger orders
- Faster fills for time-sensitive orders
- Improved availability – 99.99% uptime
“Implementing BetPro’s SOR solution delivered immediate P&L improvements across our global trading desk,” explained Merit Investments’ Head of Trading John Chen. “It’s become an indispensable execution tool thanks to features like lower fees, better fill rates, and reliable access to deep liquidity pools.”
Conclusion: Game-Changing Potential
BetPro Exchange’s SOR solution marks a seminal evolution in electronic trade execution. By efficiently linking fragmented liquidity pools, it helps traders secure best-priced fills and unlock hidden value.
As global markets scale in complexity, smart routing systems like BetPro SOR will only increase in strategic necessity and value. Leading liquidity takers and makers worldwide rely on solutions like this to navigate increasingly fragmented markets.
BetPro Exchange stands at the forefront of innovating smarter order workflows to unlock efficiency at scale. Its newest dynamic router offering seems primed to transform execution quality market-wide.
Frequently Asked Questions
What trade types are eligible for SOR?
BetPro SOR handles a wide range of order types including market, limit, TWAP, VWAP, participation and more.
Does BetPro SOR work with FIX API connections?
Yes, traders can easily enable SOR functionality through standard FIX protocols and message types.
Can I assign specific venues to route or avoid?
Absolutely – traders can customize routing inclusion/exclusion lists to meet preferences.
Is there a minimum order size for SOR eligibility?
No minimum order sizes are required to leverage SOR capabilities.
What currencies and assets are covered?
BetPro SOR works with hundreds of global equities, futures, forex pairs and other derivatives.
