Institutions can use the IBKR Alternative Trading System (ATS) to interact with SmartRouted orders in NMS stocks from other IBKR clients. Traders who do not need immediate execution, and are willing to rest mid-point pegged orders in our ATS, can effectively reduce the bid/offer spread to zero both for themselves and for the SmartRouted orders we cross with their resting order. We have incorporated anti-gaming logic into our SmartRouter to prevent predatory traders from probing the IBKR ATS to detect large resting orders. In addition, we do not trade against our clients' orders.
Clients can direct non-marketable US stock orders to the IBKR ATS destination to add liquidity. IBKR ATS orders are automatically tagged as "not held" orders and posted in IBKR ATS's order book. Incoming SmartRouted orders from other IBKR clients are eligible to take liquidity by trading against these orders.
On the IBKR ATS we offer multiple order types to help you execute your strategy. All order types (other than midpoint peg orders) provide dynamic adjustment so that a buy order is always at least one tick below the NBO, and a sell order is always at least one tick above the NBB. Midpoint peg orders are always executed at the midpoint of the NBBO. In addition, the GTD (Good-til-Date/Time) feature lets you select an expiration date and time up until which an order will stay active.
Use IBKR’s API solutions to integrate your existing applications and front-ends with the IBKR ATS and serve as a liquidity provider or find liquidity for large block orders. IBKR's industry standard FIX connection lets institutions with advanced technical resources create trading systems that take advantage of our high-speed order routing and broad market depth.
As an IBKR client, you can interact with SmartRouted order flow by directing your order to the IBKR ATS. Enter a symbol in the Order Entry panel, click "advanced +", change the destination to IBKR ATS and click submit. We look forward to helping you realize zero spread executions.
Requires TWS Latest (Version 984.1f or later).
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Interactive Brokers (Nasdaq: IBKR) is an automated global electronic broker who serves individual investors, hedge funds, proprietary trading groups, registered investment advisors and introducing brokers. Our four-decade focus on technology and automation allows us to provide our clients with a uniquely sophisticated, low cost global platform for managing investments.
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