The electronification of trading has had the effect of expanding the number of exchange venues through which traders and brokers can make deals. But that also means having to peruse those markets for best prices and to judge market liquidity. Aleri Inc., a Chicago-based trading technology vendor, is attacking that need by launching a new liquidity analysis engine that gives traders and brokers a consolidated view of order books across multiple exchanges and alternative trading systems, such as crossing networks.
The market liquidity analysis tool provides for inclusion of customized analytics and automation of order placement tasks. “The ability to aggregate into a single order book has become one of the useful tools that firms could use to navigate,” says Sang Lee, a securities market analyst and managing partner with research firm Aite Group.
“When there’s more than 35-40 potential execution venues out there, something like this could certainly provide an important role in not only in terms in trying to meet overall trading objectives, but also compliance,” including newer regulatory requirements like RegNMS trade-through rules and Europe’s MiFID investment services regulations that went live in November.
Similar order aggregation technology is being provided by “complex event processing” firms like Skyler and Vhayu, says Lee.
