Stellar Internalisation facilitates the matching of order flow internally within an organisation instead of at an execution venue. Sometimes referred to as Pre-Exchange Matching, benefits include improved regulatory compliance, reduced trading costs and increased trading opportunity. Seamless from a traders perspective; thereby having no impact on day to day trading, no change in order entry method and no change in position keeping. In addition, Stellar Internalisation is compatible with spreadMachine, Quantum Server, Stellar API, synthetic orders types and FIX order flow.
- Improved regulatory compliance: the matching of internal buyers and sellers at an exchange can be deemed to be crossing and frowned upon by exchanges and regulators. Internalisation is a very effective method of cross prevention. Buyers and sellers are satisfied without exchange visibility.
- Reduced trading costs: Internalised matching avoids exchange and central clearing house fees for both sides of the trade.
- Increased trading opportunity: Exchange orders books can be large meaning internal orders often have poor queue position and rest behind large volumes in the central order book. Internal matching allows traders to ‘jump the queue’ where a matching order has originated internally.