Liberum has recently innovated in the electronic trading space with a new trading algorithm called T-REX, built in conjunction with Turquoise (LSE). 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.
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.
In order to meet client demand we have recently launched T-REX2 and T-REX3. T-REX2 can deliver multiple executions from multiple channels & includes some SIs which have “mid price streams”, dark MTFs (useful for uncapped stocks), some extra conditional venues as well as the auctions and dark block facilities, all still at mid price or better.
T-REX3 delivers the same enhanced access as T-REX2 except it is an “all-or-nothing” order type.
Order executions typically exhibit low toxicity and reversion statistics, always being at mid price or better, are “best execution” compliant and a cogent alternative to using the RSP (Retail Service Provider) network. These solutions also “future proof” this retail algorithm in case of any regulatory changes affecting the use of auctions that operate under the Reference Price Waiver (RPW) for sub 1x LIS trade size.