PDQ ATS Rolls Out New Order Type

With Parallel Posting, equity traders can colocate passive orders in multiple venues simultaneously and then automatically rebalance the remaining bids and offers at the most active venues.

PDQ ATS launched a new order type through its smart order router known as Parallel Posting, allowing equity traders to colocate passive orders at multiple venues.

Parallel Posting allows PDQ’s subscribers to post bids and offers in multiple venues simultaneously, and as the order is executed at one venue, PDQ will automatically rebalance the open orders (by venue) to maintain the largest quantities at the active venues, according to PDQ’s release. This rebalancing approach allows for better reach and increased execution to all sources of liquidity, including dark pools and display markets, according to the company.

[For more on PDQ's New Equity Trading Venue.]

Commenting in the release, Keith Ross, CEO, PDQ Enterprises, said, “This order type effectively allows our subscribers to ‘colocate’ their orders at multiple trading venues. We take pride in the fact that if an order is not filled within the PDQ facility we can source liquidity from all the major dark pools and display markets to facilitate the order.”

When an order is sent through PDQ’s secure facility, the liquidity seeker designates either the “first to respond” or “Auction” model. If the Auction is selected, an order is paused for 20 milliseconds so that liquidity can be aggregated and price discovery improved through an electronic crowd of algorithmic market makers competing for orders. If the order should be unexecuted, it is routed using PDQ’s smart order router according to the desire of the subscriber. PDQ is connected to all major dark pools and display markets.

Following each execution, PDQ’s proprietary Parallel Posting algorithm determines whether or not the remaining open orders should be rebalanced to better source liquidity for passive orders. The system then submits cancel/replace orders as necessary and posts the remaining open orders per the algorithms parameters. These parameters are customizable for each subscriber and can include display as well as dark market centers.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio