Smart Order Execution
Smart order execution (SOE) is both new terminology and a category breakthrough of next-generation algorithms pioneered by EdgeTrade in 2005.
SOE algorithms are sophisticated in the complicated handling of orders within a fragmented market, by anonymously seeking out perpetually fluid and shifting liquidity through high-speed connections that dynamically interact with streaming quantitative, analytical and adaptive (to real time executions) methodologies.
Liquidity seeking, smart order execution algorithms from EdgeTrade include:
- FAN (Find and Nail): Introduced in 2006 in response to Reg NMS "induced" market fragmentation, FAN simultaneously sprays aggregated dark pools and public markets, and then continuously moves an order in line with sifting liquidity until best execution is achieved.
- Covert: Based on FAN, this dark pool algorithm is for traders who desire to only interact with liquidity in non-displayed markets, particularly when the potential for negative exposure is of paramount importance.
- Sumo: EdgeTrade’s first smart order execution algorithm, introduced in 2005. Sumo is the antidote to a market order. An aggressive, time-sensitive strategy, Sumo is designed to complete trades quickly while minimizing market impact and information leakage.