Traders accessing order flow using Cantor Fitzgerald algorithms can now find liquidity in IEX, the buyside-owned trading venue.
Cantor now offers users IEX’s smart order router and technology and liquidity – as the broker’s customized equity algorithmic trading strategies in its Connect Clean suite now have access to the venue.
Connect Clean Algo Suite includes access to IEX’s SOR and a dark liquidity seeking strategy which is designed to route an outsized portion to the IEX ATS and split the balance to other independent dark pools. According to IEX, IEX’s SOR routinely captures an average of 98% of the displayed liquidity across all Reg NMS “protected” market centers, helping to minimize the opportunity for quotes to fade while routing orders across all exchanges.
Also included in the suite are scheduling strategies such as VWAP and POV leveraging the IEX SOR. These strategies will take advantage of the fill rates achieved by the IEX SOR, which strives to minimize interaction with speed-driven predatory strategies.
The end result, according to both Cantor and IEX is that clients now have greater control over their orders and can better achieve best execution.
As Cantor explained, through its Connect Clean Algo Suite, the buyside can now focus on searching independent venues and leveraging IEX’s anti-gaming technology – thus enhancing fill quality and sourcing block trades. Additionally, Cantor wants to help users prevent information leakage and maintain anonymity.
“We are excited to provide clients with customized algorithmic strategies and to partner with IEX,” said Shawn Matthews, chief executive officer of Cantor Fitzgerald & Co. “By including IEX’s smart order router and trading venue in Connect Clean Algo Suite, we strive to improve fill rates and seek the best possible execution for each client.”
Clients will be able to access IEX’s SOR and ATS through the Cantor Connect Clean Algo Suite or via the cash equity desk immediately.