Liberum has recently innovated in the electronic trading space with a new trading algorithm called T-REX, built in conjunction with Turquoise (LSE) and a US investment bank which has Top 3 market share in Turquoise. T-REX executes retail flow using institutional trading technology, specifically new lit auctions (called periodic or continuous) that have appeared since MIFID II came into force.
Initial marketing feedback has been extremely positive and has triggered a wider industry discussion on the impact of new technology on traditional execution channels. The auctions occur every 50-100 ms all day and as such can offer a faster way of trading than the market making RSP, or can be used alongside the RSP. We peg T-REX to the primary BBO and when executed will always achieve Mid-point or better.
T-REX only ever delivers one execution fill, which equates to the total order size, when it trades (‘all-or-nothing’). Executions are of extremely high quality when gauged against standard trading metrics – stock prices are basically unmoved in the second before and after trading.