The new business, known as VOLEX Execution Services, provides an ultra-low latency infrastructure along with VOLEX Take Out, an order router with high-speed liquidity sweeping capability. VOLEX Take Out is designed to aggressively sweep displayed and hidden liquidity with sub-millisecond order processing times. Both VOLEX and VOLEX Take Out are available through the REDIPlus EMS platform.
âWe built the foundation on a low latency option order router, which is sub-millisecond, â said Vishal K. Gupta, head of VOLEX Execution Services in an interview.
âThe Options market microstructure is evolving quickly with 12 exchanges introducing different order type sand complicated fee tables,â explained Gupta in the release. âOnly firms that specialize in options trading can offer the continuous improvements needed to optimize order routing for a variety of trading strategies,â said Gupta.
Prior to joining Volante Trading, Gupta was a VP of Goldman Sachs who tripled the execution routing business as leader of the business development team, according to his bio. VOLEX has its own NBBO [National Best bid and offer] for the visible order book. Itâs the combination of the feed order routing logic that makes the product unique. âTo be fair, nothing works, unless youâre fast,â said Gupta.
âThe options order router is ever changing,â noted Gupta in the interview. âLike a race car, it needs to be updated. An options router is only as good as the support behind it,â added Gupta.
âWeâre excited about this new relationship with VOLEX Execution Services,â said Goutam Nadella, Chief Product Officer of REDI Global Technologies. âBy offering connectivity to VOLEX through REDIPlusÂ® EMS, weâll provide users with cutting edge technology and a robust suite of options trading tools for all strategies,â stated Nadella.
Traders that use VOLEX Takeout are provided with a set of default parameters for selecting their aggression level. Available over REDIPlus, there is a drop-down menu with the choice of passive, moderate and âTake Out,â which is the most aggressive setting.
âWe not only take out the liquidity we see on screen, but we do some aggressive taking logic of any [hidden] liquidity that may be there that is not seen,â said Gupta. The routing logic â really a routing algorithm â incorporates experience based on market, symbol, currently displayed and historical patterns of options trading.
Option traders can also use âaggressive posting techniquesâ to attract liquidity from the sidelines.
Currently, VOLEX is working with a few large broker dealer clients that piloted the service to start the business. This is the first public announcement of the business.
âVolant is a highly focused options team, that is where our backbone is,â said Gupta. âLeaning on it, weâve been ready to build-out an incredible service,â he said.