Looking to optimize its electronic trading functions, Banc of America Securities’ electronic trading services group has added smart order routing for equity options to its InstaQuote direct market access platform.
Banc of America says this new technology enables InstaQuote users to efficiently transact equity options orders across a vast network of liquidity, thereby lessening their dependency on the exchange linkage system.
The company says the options order routing technology constantly scans the listed options exchanges to find the National Best Bid or Offer (NBBO) or better for orders placed through the system. It claims the technology also has the ability to route orders automatically to seek best execution.
Rob Flatley, co-head of electronic trading services sales at BAS, said, Smart order routing capabilities for options is anonymous and easy to use, and optimizes execution quality with each transaction. We believe this will be invaluable for InstaQuote users. As advanced forms of electronic trading grow in popularity, derivatives markets represent the next major frontier for the sophisticated, strategy-driven tools already at work in the cash equities space.