The Gateway to Algorithmic and Automated Trading

Cantor leverages IEX to provide increased transparency for clients

First Published 11th December 2014

Cantor Fitzgerald announces the availability of equity algorithms leveraging IEX's Smart Order Router and Alternative Trading System, as part of the Cantor Connect Clean Algo Suite.

Shawn P. Matthews, CEO, Cantor Fitzgerald & C

Shawn P. Matthews, CEO, Cantor Fitzgerald & C

By including IEX's smart order router and trading venue in Cantor Connect Clean Algo Suite, we strive to improve fill rates and seek the best possible execution for each client."

New York - Cantor is one of the first major firms to leverage IEX's SOR across a custom suite of algo strategies. By focusing on independent venues and leveraging IEX's anti-gaming technology, the Cantor Connect Clean Algo Suite aims to prevent information leakage and help clients improve execution quality.

"We are excited to provide clients with customized algorithmic strategies and to partner with IEX," said Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co. "We are constantly investing in our technology platform and enhancing our suite of products and services to meet the ever-changing needs of our clients. By including IEX's smart order router and trading venue in Cantor Connect Clean Algo Suite, we strive to improve fill rates and seek the best possible execution for each client."

Jarred Kessler, Global Head of U.S. Equities at Cantor Fitzgerald & Co., said, "In speaking with clients, we have noticed an increased demand for transparency in the routing practices of electronic offerings. We wanted to create a pure and un-conflicted trading environment, whether they leave working orders with our cash desk or trade through our electronic offering. We are pleased to be able to leverage IEX's smart order router and trading venue to provide clients the opportunity to more openly and efficiently trade, improve execution quality and take charge of where orders are executed."

The Cantor 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.

"We believe the markets can self-correct, but to do so market participants and market centers have to continually innovate and provide transparency for investor clients. Cantor shares our ambition to create a more balanced marketplace, and is one of the firms that is proactively building offerings and solutions to address important market structure issues and help clients better navigate today's trading environment. We are excited to be partnering with Cantor and to help optimize execution quality for its clients," said Brad Katsuyama, IEX CEO and Co-Founder.

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.