FOR THE
MODERN BROKERS

We enable brokers to launch distinctive brands successfully.

One Stop HubFrom technology to liquidity, all in one place.

Fast & EfficientSave time and money with no development required.

CORE SOLUTIONS

MT4/5 White LabelTurnkey FX Broker trading platform integrated with Broctagon’s complete solution suite.

AXIS 3.0 CRMYour highly customizable and fully branded FX Broker CRM deployed in 1 Day. SaaS model, no setup fee.
MULTI-ASSET LIQUIDITY
Over 1000 instruments with spreads from zero.
FULL SUITE

Investment PlatformPAMM / MAM / Social Trading

Ancillary ServicesIncorporation / Licensing / Website

Data Centre SecurityProtection / Recovery / Pentest
FOR NEXT-GEN
EXCHANGES

We enable exchanges to be instantly competitive with robust liquidity.

FOR PROMISING
TOKEN PROJECTS

We help tokens manage liquidity so they can focus on delivering success.

NEXUS 2.0 EXCHANGE SOLUTIONS

NEXUS LinkLiquidity Aggregator &
STP Engine
Supercharge your order books with aggregated liquidity.

NEXUS AutoChartData-Driven
Chart Synthesis
K-line plotting with global price discovery.

NEXUS CoreAutomated Market Making
System
Highly customizable with
full in-house control.

NEXUS E.O.E.Exchange of Exchanges (Coming Soon)Regulated Spot crypto liquidity provider. Single Counterparty.
TOKEN SOLUTIONS

NEXUS NativeAltcoin / Native Token
Liquidity Management
Market making and capital management system.
FOR FUTURE-PROOF
BUSINESSES

We enable businesses to participate in a decentralized future with minimal inertia.

Managed ServiceSo you can focus on your core business

SeamlessIntegrate blockchain into your current infrastructure

BLOCKCHAIN SOLUTIONS

NFT MarketplaceLaunch your fully branded NFT marketplace x social media platform.

DeFi Yield FarmingIntroduce incentive modules to your liquidity providers for your protocol.

Enterprise DevelopmentTailored, end-to-end solutions
and consultancy for non-disruptive blockchain implementation.

  DeFi Arbitrage Bot  Integrate a smart investment bot          with arbitrage trading.

Blockchain-in-a-BoxIndustry-agnostic data
integration on chain for
experimental implementation.

Whitepaper CreationCraft a professional whitepaper complete with project and
technical advisory.
LET’S TALK

Free ConsultancyAllow us to understand your business to customize the perfect fit for your needs.

Schedule a Meeting

What is Smart Order Routing?

Thursday, January 21st, 2021

Smart Order Routing (SOR) is an automated order processing mechanism, designed to take the best available opportunity across a variety of different trading platforms. 

The rise in the number of different trading platforms and multilateral trading facilities (MTFs) contributes to a surge in liquidity volatility as the same asset is exchanged in multiple venues, causing the price and quantity to vary between each platform. SOR helps to counter, or even gain, from liquidity fragmentation. SOR is carried out by smart order routers; systems designed to analyse the state of the venues and position orders in the best possible way to achieve the best ask/bid prices. 

The Beginnings of Smart Order Routing in Traditional Exchanges

Before the current routers started gaining attention, Direct Order Turnaround or DOT were the original versions of SOR. However, it could only guide orders to one destination within the institutional buy-side. Stock exchanges would have to manually search and compare data from different venues on their own. 

However, in 2007–2008, smart order routers started to gain widespread attention in Europe, with the primary goal for capturing liquidity at various venues. The SOR systems were enhanced and this helped stock exchanges to cope with high-frequency trading, enjoy reduced latency and incorporate smarter algorithms. After its spike in popularity, SOR improved the overall efficiency of order routing by choosing the most suitable execution prices.

The implementation of SOR enables exchanges to get the best prices from multiple market platforms automatically, hence optimizing the best outcome of all trade orders and drastically reducing the need for exchanges to source for prices manually. 

Smart Order Routing in Crypto Exchanges

Although cryptocurrencies were initially created as an alternative peer-to-peer electronic cash system to replace fiat and legacy payment services, the limits of scalability and levels of volatility prevents it from being adopted at a mass scale. Compared to traditional markets, the crypto market is still in its nascent stage.  Currently, apart from centralized marketplaces, cryptocurrencies can be traded on various trading venues, including decentralized exchanges.  The flip side to this flexibility is the liquidity fragmentation that occurs when the prices and volumes of the same coins differ on different platforms. Similar to stock exchanges, SOR can be implemented to solve these fragmentation issues in crypto through NEXUS 2.0, Broctagon’s proprietary liquidity aggregation engine.

How SOR in NEXUS 2.0 works

NEXUS 2.0 connects your Crypto Exchange to the aggregated liquidity pool of the industry’s largest exchanges such as Binance, Huobi, Bitfinex and more. By tackling liquidity fragmentation through SOR, the NEXUS liquidity network sets the foundational infrastructure for inter-exchange liquidity – a parallel to interbank FX liquidity.

The automation provided through NEXUS 2.0 matching engines helps to process orders at the best price available in real time. Upon trade confirmation, orders are automatically allocated to the best-priced exchange through real-time/net position STP (Straight Through Processing) functionality to ensure instant communication between relevant counterparties.

What this means for exchanges is that their traders will effectively trade across multiple exchanges through a single avenue. They will have round-the-clock access to the fairest trades at the best market prices, regardless of illiquid market circumstances.

Discover how NEXUS 2.0 streams liquidity in real-time for the best prices through a demo. Simply indicate your timing preference here:  https://bit.ly/TeresaBroctagon

For more information on Broctagon’s offerings, head to https://broctagon.com/nexus/

About Broctagon Fintech Group

Broctagon Fintech Group is a multi-asset liquidity and technology provider headquartered in Singapore with over 10 years of established global presence in China, India, Russia, Cyprus, Hong Kong, Thailand, Malaysia, and Vietnam. With our decade of serving satisfied clients in 50 countries, Broctagon is well-equipped to elevate companies through performance-driven and flexible turnkey solutions such as our liquidity aggregator technology, brokerage technology solutions, and enterprise blockchain development.
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