Smart Order Routing

Direct Edge has a vast selection of routing strategies designed to provide Members with fast, efficient access to liquidity. Members can use our smart order router to connect to exchanges, ECNs and dark pools while still taking advantage of innovative pricing and growing liquidity on the EDGA and EDGX exchanges.

The Direct Edge smart order router is built on a high performance, low latency infrastructure. Our routing technology incorporates real-time market data including the consolidated quote feeds and depth-of-book feeds, giving it the ability to make educated decisions — achieving speed and agility.

Direct Edge smart order routing offers:

  • Proven, innovative infrastructure and technology with built-in depth of book
  • Comprehensive source of supplemental liquidity
  • Facilitation of regulatory compliance
  • Cost-effective and easy way to connect to other market centers
  • Flexibility in designing new routing strategies based on Member feedback

Cost Effective Routing via EDGA

  • Post Remainder on EDGX – Earn a $0.0027 per share rebate when you route orders via EDGA and post the remainder to EDGX using one of 20 eligible routing strategies. Refer to Trading Notice #12-05 to learn more.
  • Midpoint Routing Strategy (RMPT) – RMPT is a simple and fast way to target mid-point liquidity across multiple destinations. Available via EDGA, RMPT is a routing strategy that allows you to interact with mid-point liquidity on EDGA, EDGX, select participants in our CLC and other exchanges with a single order. Refer to the RMPT Fact Sheet to learn more.

Download the EDGA Routing Matrix to see the full list of routing strategies and additional routing opportunities.


ROUQ on EDGX

Sending an order via ROUQ allows you to access more liquidity with minimal latency and a low blended rate.

  • If a ROUQ order cannot be filled on the EDGX book, it will be routed to the Super Fast CLC, giving it more order exposure with minimal additional latency.
  • Orders that remove and/or route liquidity using ROUQ are charged a discounted rate of $0.0027 per share.

To learn more, download the ROUQ on EDGX fact sheet.


Max Liquidity Strategies

Use our suite of Max Liquidity strategies to simultaneously access liquidity from all displayed markets, getting your order done quickly and efficiently. Choose a strategy that works with your trading priorities, leveraging dark pools for low-cost, low impact executions with the Comprehensive Liquidity Check (CLC) or only interact with the displayed markets.

ROUT Book + CLC + Displayed markets
ROUE Book + Select CLCs + Displayed markets
ROUX Book + Displayed markets

Optimize your order when using any of our Max Liquidity strategies:

  • Post to Away Markets – Post the remainder of your order to a specific destination when using our Max Liquidity strategies. After simultaneously accessing liquidity from all displayed markets, Members will be able to post any remaining liquidity to venues including CBSX, NYSE Amex, NSX and CHX. Refer to Trading Notice #12-12 to learn more.
  • RouteToImprove – Seeks price improvement by sending orders to multiple market centers to execute the most liquidity at the best price level.
  • RouteToFill – Facilitates fast fulfillment by sending orders to multiple market centers to access as much liquidity as possible at multiple price levels.

Destination-Specific Orders

Our suite of destination-specific strategies allows Members to leverage Direct Edge’s proven routing technology to access other markets — saving time and money.

  • Directed Inter-Market Sweep Order (ISO) – At only $0.0032 per share, this is a cost-effective way to send orders without the burden of setting up connectivity to other destinations. These orders are sent as Immediate or Cancel (IOC) ISO directly to the destination specified by the routing strategy and the remainder that is not executed is cancelled back to the member.
  • Edge Plus Orders – These orders pass through the originating Direct Edge Exchange book before routing out to the destination specified in the routing strategy as Immediate or Cancel (IOC) orders. This allows Members to take advantage of innovative pricing and growing liquidity on Direct Edge Exchanges, while also supplementing with additional liquidity venues. Note: Certain Edge Plus strategies post on destination exchange book when marked as DAY orders.

Refer to our full list of Destination-Specific strategies.

To learn more about our routing strategies and how you can optimize your trading with Direct Edge smart order routing, contact the Direct Edge Sales Team at 201.942.8259.




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2013 Wall Street Letter
Institutional Trading Awards:

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Most Innovative Exchange
2013 Institutional Investor
“Trading Technology 40”:

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Officer, #29