Instinet, a leader in financial technology, has introduced groundbreaking Smart Order Routing (SOR) capabilities to South Africa’s JSE and A2X, bolstering connectivity for local and international investors.
Instinet: Advancing Trading Efficiency
Instinet’s recently launched Smart Order Routing (SOR) capability, powered by proprietary technology, aims to optimize trading efficiency in the South African markets. The move addresses the increasing demand for greater venue diversity and enhanced liquidity access.
Shaping Market Dynamics
Historically dominated by the JSE, South Africa’s market experiences a transformative shift with the introduction of A2X, a significant competitor. Instinet’s SOR initiative reflects the market’s evolving dynamics, responding to the demand for increased competition and offering traders diverse opportunities for strategic investments.
International Interest Catalyst
Instinet’s EMEA head, Salvador Rodriguez, highlights that the initiative will likely attract more international interest by providing global asset managers with tools for smart order routing. The move aligns with the global financial community’s preference for multiple exchanges and varied order types, enhancing opportunities and relationships in the South African market.
In an interview with The TRADE, Rodriguez said, “From our perspective as a technology provider, making the local market more efficient for the local participants was a key part of the decision. The feedback we’ve had is that a lot of local participants are crying out for more diversity of venue.”
“But also from our own client base perspective, it gives them the tools that they require to access the different liquidity and price opportunities that may exist through the competition that’s being introduced,” he said. “A lot of the international global asset managers based in EMEA are more accustomed to smart order routing. They’re accustomed to multiple exchanges and many different order types.”
“Why wouldn’t you have liquidity on another venue and engage with it. It opens up further opportunities with regards to exploring more relationships with other participants – having something that allows you in a quick efficient and automated manner to access those opportunities efficiently is essentially the core of the smart order routing,” said Rodriguez.
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