smartTrade Liquidity Management System (LMS) is the financial industry’s cross-asset liquidity management solution (LMS) that enables firms to manage their liquidity for best execution, smart routing orders for one of more asset classes across the trading room as well as across regional and global trading operations, enhanced client servicing and tighter control of flow for risk management. Used by banks, broker-dealers, asset managers and large hedge funds, smartTrade LMS can be deployed on a cross-asset basis or implemented by single or multi-asset product sets for:

  • Best execution
  • Internalization and crossing of orders with and without obligation of transparency
  • Smart order routing (SOR), including managing and reconciling the lifecycles of orders
  • High-frequency trading
  • Dark pools for client trading
  • Multi-leg trading
  • Multi-asset trading, i.e., inter-listed securities that can be traded on multiple geographic exchanges
  • Create custom distribution strategies for Market Data, Price Spreading, and Trading Limits Management

The LMS is made up of separate components that can be used individually or in combination, allowing firms to select precisely how they need to manage their liquidity to support their unique value proposition to clients and to enhance the functionality of their existing infrastructure.
As a platform, the smartTrade LMS is highly scalable, lightweight to deploy, and has been implemented to very low latencies by high-frequency trading desks. The LMS is composed of modular core components – LiquidityConnect, LiquidityAggregator, LiquidityDistributor, LiquidityOrchestrator, LiquidityCrosser and the Order Management System. Each can be used as stand-alone systems or in combination. Together, these components can be assembled to develop multi-asset trading platforms that:

  • Connect electronically to any number of venues regardless of messaging protocols.
  • Aggregate liquidity from dozens of sources to create a single order book.
  • Distribute customized pricing to clients.
  • Manage client order flow.
  • Implement smart order routing using proprietary algorithms.
  • Internalize liquidity and/or route it to external venues.
  • manage state throughout the order lifecycle.

The system handles multiple asset classes and is in production globally supporting foreign exchange, fixed income, equities, rates, and many other instrument types.

Liquidity management integrates market making, proprietary trading, smart order routing, internalization and agency trading with best execution in a single package to optimize the use of capital across the full range of sell-side demand. It is inherently multi-asset and multi-geography and provides a normalized model of fragmented markets on which algorithms or pricing engines can optimize their decisions.

Harry Gozlan, smartTrade Technologies, Founder & CEO