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2012issue C0572

Compare equivalent listings before routing

The same or similar products can be listed on more than one marketplace. Compare those equivalent listings for documentation, speed, volume, pricing, and protections, then route only to a book the executing broker can reach.

  • The same or similar products can sit on more than one marketplace, so a trader may have more than one book for a given instrument.
  • Venue competition is about product mix, volume, speed, pricing, and investor protections, not whether the marketplace is a physical floor.
  • Trade documentation is presented as a way to reconstruct a disputed fill, and a wider set of venue alternatives is described as contributing to lower transaction costs.
  • Comparing equivalent listings is useful only if the executing broker can route the order to the selected marketplace.
Entries in this reading1 entry
Current trackOrder routing65 readings

More than one book can exist

The same or similar products can be listed on more than one marketplace, so a trader may have more than one book for a given instrument. An equivalent listing is a product that offers the same economic exposure on more than one marketplace.

In the historical workflow, exclusive control of a product by a single marketplace is characterized as no longer the default structure.

How marketplaces differ

Venue competition is differentiation among marketplaces on product mix, volume, speed, pricing, and investor protections rather than physical location. A marketplace can operate as remote electronic infrastructure rather than a physical trading floor.

What the comparison is for

Extensive trade documentation is presented as a way to reconstruct events quickly when a fill is disputed. Trade documentation means venue records of order events used to reconstruct a fill or resolve a dispute.

A wider set of venue alternatives is described as contributing to lower transaction costs. In this workflow those costs sit inside implementation cost: the spread, fees, and related trading costs incurred once an order is sent to a chosen book.

Send only to a reachable book

Comparing equivalent listings is useful only if the executing broker can route the order to the selected marketplace. Order routing is the decision of which reachable marketplace receives an executable order, including the implementation cost of that path.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
7 of 30 in the Order routing track
201262-62 pp.Next on Order routingRebate-aware routing and execution costProviding-liquidity meant resting a limit so another participant had to hit the bid or lift the offer, and venues historically paid a rebate for that posted size.
All readings on this track · 30 readings
  1. 1988Why instant basket routing overwhelms specialist liquidity
  2. 2004Retail forex tickets as implementation-cost contracts
  3. 2005A two-gate liquidity filter for futures order routing
  4. 2006Manual after-hours routing and open-outcry fill risk
  5. 2010A futures brokerage quote is an execution specification
  6. 2011Smart order routing, maker-taker, and midpoint execution costs
  7. 2012Compare equivalent listings before routing
  8. 2012Rebate-aware routing and execution cost
  9. 2012Platform routing, fees, and server-side stops
  10. 2013Compare equivalent listings, then route the order
  11. 2013Confirm routing, margin, and fill cost before a live forex order
  12. 2013Brokerage choice as an execution-cost and routing filter
  13. 2014Order routing, pass-through rebates, and liquidity choice
  14. 2014Comparing exchange venues before routing the order
  15. 2014Selecting a futures broker as an execution-architecture problem
  16. 2014Commission shopping is the wrong first filter for a futures order
  17. 2015Routing orders when equivalent products trade on multiple venues
  18. 2015Forex venue checks for speed, margin, and implementation cost
  19. 2015Backup venues and symbol splits in futures routing
  20. 2016Route orders across competing exchange venues
  21. 2016Filter exchange venues before routing orders
  22. 2017Venue choice as an order-routing filter
  23. 2017Venue routing for equivalent listed contracts
  24. 2017Forex broker checks for fill speed, quote honor, and margin
  25. 2017Brokerage choice as an execution-speed and commission filter
  26. 2018Routing equivalent contracts across competing venues
  27. 2018Forex venue selection by fill speed, margin terms, and price honor
  28. 2019Forex execution filters for routing, cost, and liquidity
  29. 2020Routing equivalent listings across competing exchanges
  30. 2020Brokerage filters for routing, commissions, and liquidity
By fieldOrder types and routing87 readingsBy year2012165 readings
All 65 readings tagged Order routing
Also on Order routing5 readings
1986Open outcry hand signals as order routing1988Why instant basket routing overwhelms specialist liquidity1989Finishing a market order in a first index-pit session1995Canceled prints versus executable fills1999Direct access routing and the visible book