Quod Financial, a provider of adaptive trading execution technology, has pre-loaded its Adaptive Smart Order Router with a library of trading algorithms for better execution and lower market impact.

Ali Pichvai, chief executive of Quod Financial, says: “The days of separate infrastructure for scheduling and execution of orders are gone. By combining the trading and liquidity seeking algorithms, QF ASOR hunts lit and dark liquidity to maximise fill rate and makes real-time decisions to reduce market impact.

“This is achieved through historical data, real-time analysis of pre- and post-trade data and the execution algorithms embedded in Quod Financial’s Adaptive Execution Platform. By integrating Quod Financial’s library of algorithms with its smart order routing capabilities, our clients will be able to clearly see the market impact of each order, as well as measure the success of grabbing liquidity in real-time. This, in turn, allows traders to respond in real-time to dynamic changes in liquidity conditions for highly efficient liquidity management.”

QF ASOR offers a range of algorithm classes, including: statistical-based algorithms, which incorporate different historical analysis with the aim to minimize market impact, and real-time statistics indicating where liquidity resides and the quality of each venue; probabilistic-based algorithms, which incorporate diverse methods to seek out hidden and non transparent liquidity; and mathematical optimisation methods, which address large and complex decision-making cases especially for highly fragmented markets.

Developed as part of Quod Financial’s trading solutions suite adapting in real-time to changing conditions in liquidity venues, Adaptive Smart Order Router can be used in conjunction with Quod Financial’s Adaptive Cross to offer simultaneous access to internal and external liquidity reducing the barriers to entry for internally crossing order flow to both tier I and tier II institutions.