Smart Order Router (SOR)

Smart order routing (SOR) is an automated online trading method that identifies and executes the most favorable trading opportunities across different financial markets and trading venues. In essence, when employing SOR, an investor provides a predefined set of conditions to a group of bots or algorithms, which then scan multiple markets based on the given criteria to find the best environment for executing a particular order. Investors typically program the algorithms used for SOR to differentiate various trading venues based on factors such as latency levels, fee structures, available liquidity, and specific parameters tailored to their unique trading strategies. Consequently, implementing SOR necessitates robust API integrations across various platforms to effectively utilize this data-intensive, multiplatform trading strategy.