You are here: Global Configuration > Configuration > Configure SmartRouting

Configure SmartRouting

You can define event-specific directives for contracts routed through IB SmartRouting, such as excluding quotes, setting a price cap by defining the acceptable distance from the NBBO, and specifying a strategy for non-marketable orders.

To modify SmartRouting functionality

  1. On the Edit menu select Global Configuration.
  2. Click Smart Routing in the left pane.
  3. Use the right panel to set these parameters:

Excluded Quotes

IMPORTANT If you choose to: a) exclude quotes from certain exchanges; b) exclude non-firm quotes; or c) exclude exchanges whose quotes are not automatically executable, your order may not be executed at the best posted price nationally (the “NBBO”). This is because one of the exchanges that you chose to exclude might have the best posted price but that exchange will be bypassed by the IB SmartRouting system on your instruction.

In addition, if you exclude certain exchanges from the eligible SmartRouting destinations and your order is routed to another exchange with an inferior posted price, your order may not be executed by the exchange to which it is sent because that destination may not be willing to execute at an inferior price, or your order may not be marketable at that exchange. You should carefully evaluate all of these factors before deciding whether to exclude certain exchanges from the eligible IB SmartRouting destinations.

Routing Configuration

Seek Price Improvement

If checked, Smart routing will sweep certain exchanges for hidden liquidity at more favorable prices. This may result in slower executions.

Pre-Open Re-route

This allows you to route orders to major exchanges three minutes before the open. For orders submitted before the open, checking this box ensures your orders are routed prior to the open. This directive only applies to stocks listed on a major exchange, and cannot be used if the Ignore Opening Auction order attribute is set.

SMART Stock Routing Algorithms

Customers who have the unbundled "Cost Plus" commission structure for stocks have the ability to choose from a list of Smart routing strategies for non-marketable stock orders to complement their trading strategy.

Use the checklist to select a single "Default" strategy which will automatically be applied to any non-marketable, Smart routed stock order, and any number of "Display" strategies, each of which will be available from the Destination field as a per-order selection.

Available strategies include:

To change your pricing structure from bundled to unbundled and take advantage of this feature, log in to Account Management, and select Account Administration and then Pricing Structure from the left contents pane.

SMART Option Routing Algorithms

Choose how to route a smart-routed, non-marketable options order.

Try to post where the order will be on the top

Smart-routing will attempt to post your order to an exchange where it will be at the top of the book. Enabling this feature does not guarantee that the order will be at the top of the book, and may reduce the likelihood of getting a fill on the order.