Insights
Smart Order Router: High-Performance Execution Infrastructure
How to build institutional-grade smart order routing systems that deliver optimal execution across multiple venues.
Institutional trading infrastructure projects often carry more weight than their timelines can bear. Regulatory demands, fragmented venue protocols, and latency requirements create layers of complexity that rarely move in unison.
When a tier-1 European bank needed to consolidate 17 major execution venues into a single, high-performance smart order router with full disaster recovery, the timeline was non-negotiable: six months to production.
Project Overview
Tighter control and more relevant expertise enabled faster delivery, not expanded resources. Infrastructure and application engineering ran in parallel, supported by an approach that allowed for structured iteration without compromising accountability.
Parallel Development Strategy
Venue adapters built simultaneously while core routing engine development proceeded. This parallel approach reduced overall project timeline by 40% while maintaining quality standards.
Pre-Trade Risk Integration
Real-time position and exposure checking built into routing logic. This ensures every order is validated against risk limits before execution, preventing potential losses.
Hot-Hot DR Architecture
Active-active disaster recovery with real-time state synchronization. This provides 99.9% uptime with zero data loss in the event of a primary system failure.
Key Success Factors
Unified FIX Gateway
Single protocol normalization layer handling venue-specific FIX dialects. This simplifies connectivity and reduces maintenance overhead across multiple venues.
ETF Liquidity Engine
Integrated ETF creation/redemption logic for improved execution quality. This enables better pricing and liquidity for ETF trading strategies.
Comprehensive TCA Integration
Real-time transaction cost analysis feeding back into routing algorithms. This enables continuous optimization of execution strategies based on actual performance data.
Results
The result was a system that didn't just go live faster but performed as intended. Market connectivity was stable, latency was within target thresholds, and operational teams had confidence in the failover design due to the depth of pre-release testing.
The ability to manage complexity through direct and deliberate coordination made the difference, not a new methodology. At e7n.tech, this is the type of work we focus on, helping institutions navigate the technical and operational realities of modern trading environments without unnecessary friction.
Ready to Build Your Smart Order Router?
Get expert guidance on building high-performance execution infrastructure that scales with your trading needs.