Aleri has rolled out a market liquidity analysis server to make it easier for traders to route orders among increasingly large numbers of execution venues. The server lets traders analyze any number of
potential execution venues for liquidity that's available on the book and add proprietary analytics for order router modeling. "The server allows traders to detect anomalies in the market and react quickly,"
said Don DeLoach, ceo. Most liquidity analysis engines merely collect the data, but traders have to analyze it separately, which results in delays that could impact execution.
Jeff Wooton, v.p. of product strategy, said the engine not only targets the exchanges with full depth-of-book data but also those venues that only offer top-of-book prices. This ensures that the trades are Reg NMS and Markets In Financial Instruments Directive-compliant. Traders typically choose four to 15 venues for analysis, with the buyside looking for insight into the market and the sellside incorporating the
data to enhance routing. "There
is a realization that the market is very fragmented and that it's difficult to analyze the entire market. The engine ensures you have control over the span of the venues," Wooton
said.
