BATS Rolls Out Two Smart Order Routing Strategies for U.S., Europe

BATS Global Markets unveiled two smart order routing strategies for exchanges in the U.S. and Europe which aim to allow traders to simultaneously access multiple market venues.

The strategies – Parallel 2D and Parallel T – are available on the exchange operator’s U.S. exchanges. Parallel 2D is can be accessed on the BATS Europe and BATS Options exchanges, the company said.

“In Europe this move has particular significance for our participants, enhancing the only MTF-operated, pan-European smart order router that routes to both lit and dark venues,” Paul O’Donnell, the chief operating officer of BATS Europe said in a statement.

The company said Parallel 2D routes to all price levels at parallel protected market centers across the U.S. But in Europe it routes to all price levels at displayed market centers up to the limit price.

BATS added that Parallel T, which is only available in the U.S., routes orders in parallel to protected markets by sending only the exact quantity of the top quote to each market center. And unlike Parallel D and 2D, it will not use depth of book quotes to build the routing plan, the firm said.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio