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{{unreliable sources|date=April 2013}}
'''Smart order routing''' ('''SOR''') is an automated process of handling [[Order (exchange)|orders]], aimed at taking the [[best execution |best available opportunity]] throughout a range of different [[trading venue]]s.<ref>{{cite news |newspaper=[[Wall Street Journal]] |url=https://www.wsj.com/articles/SB119785381762232795 |quote=had led banks and brokers ... to offer smart order routing |title=Brokers doubt forecastsof trading fragmentation |first=Luke |last=Jeffs |date=December 17, 2007}}</ref><ref>{{cite book |title=Market Liquidity: Theory, Evidence, and Policy|quote=They often use smart order-routing technologies to ... |first1=Thierry |last1=Foucault |first2=Marco |last2=Pagano |first3=Ailsa |last3=Röell |year=2013}}</ref>
The increasing number of various trading venues and [[Multilateral trading facility|MTFs]]
== History
===1980s===
The forebears of today's smart order routers appeared in the late 1980s: "In an attempt to lock in the client order flow and free traders up from smaller trades, in order to handle the larger trades, many of the larger broker dealers began to offer a new service called
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By 1988, '''SuperDOT''' included "roughly 700 communications lines that carry buy and sell orders."<ref>{{cite magazine
|magazine=[[Network World]]
|date=October 17, 1988 |page=7 |title=}}</ref>
===1990s===
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|doi=10.1080/14697688.2016.1190030 |citeseerx=10.1.1.245.1411|s2cid=14652208 }}</ref>
== Benefits and disadvantages
SOR provides the following benefits:<ref name=":0">{{Cite web|last=Itkin|first=Iosif|title=Liquidity Fragmentation & SOR|url=http://www.slideshare.net/IosifItkin/liquidity-fragmentation-sor|date=2011-09-27}}</ref>
* Simultaneous access to several venues;
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* Transparency of information, concerning your transactions, for the third party;
==
The idea of Smart Order Routing is to scan the markets and find the best place to execute a customer's order, based on price and liquidity.<ref>{{Cite journal|title=Stocks for Jocks|url=http://www.investorbrain.com/index.php/logicalblocks/2005/04/|journal=Barron's|date=2005-04-25}}</ref>
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Some institutions offer cross-border routing for inter-listed stocks. In this scenario, the SOR targeting logic will use real-time FX rates to determine whether to route to venues in different countries that trade in different currencies. The most common cross-border routers typically route to both Canadian and American venues; however, there are some routers that also factor in European venues while they are open during trading hours.
==
* [[Best execution]]
* [[Central limit order book]]
* [[
* [[
==References==
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