Published Date : 5/11/2011
Inside The May 2011 Release
In an effort to continuously improve your experience on Direct Edge, we are introducing a new release (2.7), which will feature new routing strategies and improved functionality for existing routing strategies. Below is an overview of the new release.
RELEASE DATES
Effective dates for the May release:
Monday, May 23 for EDGX
Monday, June 6 for EDGA
NEW—ROBB and ROCO ROUTING STRATEGIES FOR EDGA
Direct Edge is introducing two new, low-cost strategies on EDGA – ROBB and ROCO. Using ROBB and ROCO, customers can access multiple low-cost liquidity pools with one efficient order type.
ROBB EDGA + BX + BYX
ROCO EDGA + BX + BYX + CLC + MPM (on EDGX)
For information on pricing, please click here.
NEW— SWPC, A REG NMS ISO ROUTING STRATEGY
Direct Edge is introducing SWPC, which joins the suite of ISO strategies – SWPA and SWPB—that enable customers to route the minimum shares to meet the Reg. NMS Trade-Through Rule requirements.
SWPC will sweep the displayed top-of-book from all protected markets up to the limit price of the order. Any remaining shares will interact with Direct Edge liquidity and then post to the book at the order’s limit price. SWPC will still sweep the market when the order quantity is less than the total protected quantity that is better than or at the price of the order.
Industry-Leading Pricing (Pending SEC approval)
$0.0031 for any routed execution. That’s the best pricing, compared to similar ISO order routing strategies at competing exchanges.
For information on SWPA and SWPB, please click here.
IMPROVED SPRAY ROUTING
ROUC has been enhanced to set the limit price to the NBBO (instead of the parent order limit price) when routing to away markets. ROUC routes to the Direct Edge Book, CLC, MPM (on EDGX) and low-priced destinations. Some destinations trade away from the NBBO when the market is crossed. This enhancement will ensure that executions are always at the NBBO or better when routing to these destinations.
ENSURE YOU POST YOUR ORDER
To standardize the behavior for non-IOC orders, ROUD, ROUZ, ROBA, ROBX, ROBY, ROPA, IOCX and IOCT will be updated so that any remaining shares returned from the Router will interact with liquidity on the book and then post to the book, subject to re-pricing. All other non-directed strategies already behave this way.
FOR MORE INFORMATION
For a more in-depth view, please call your Account Representative or click on one of the links below.
May 2011 Release Details (examples, pricing, etc.)
Technical Specs