KCx joins forces with BMLL to accelerate the deployment of a novel trading infrastructure
BMLL's Level 3 Data Empowers Kepler Cheuvreux's Smart Order Routers
In the rapidly evolving world of European equity trading, smart order routers like Kepler Cheuvreux's KCx Omni system are revolutionising the way trades are executed. A key factor in this transformation is the use of BMLL's historical Level 3 data.
This detailed data provides granular, comprehensive information about the trading intentions of market participants across fragmented European markets. This valuable insight enables KCx to develop intelligent order routing algorithms that can precisely identify when and where to engage specific liquidity pools, leading to best execution outcomes.
BMLL collects raw exchange data directly from trading venues and processes it into a globally harmonized and normalized format. This comprehensive Level 3 data reveals the full depth of the order book and participant intentions, enabling KCx's KCx Spark smart order router to dynamically and intelligently access liquidity across multiple venues, tailoring execution decisions to real market conditions.
By leveraging BMLL's data and scalable analytics platform, including a cloud-based Data Lab for market structure research and algorithm back-testing, Kepler has accelerated its technology development. This foundation supports KCx Omni’s broader goal of optimised trading execution amidst complex, fragmented markets.
Paul Humphrey, CEO of BMLL, describes their approach as a new paradigm for supplying market data. By partnering with BMLL, Kepler's team can focus more on innovation rather than data crunching. In fact, Kepler has joined BMLL's products advisory board, allowing for input on the direction of the firm's data.
Moreover, by partnering with BMLL, KCx avoids the complex and costly task of building and maintaining infrastructure to store massive data volumes. BMLL handles the data systems for them, enabling KCx to focus on developing cutting-edge trading technology.
Recently, KCx Spark, the new smart order router developed by KCx, has gone live, featuring a dark-order placement model powered by BMLL data. This development allows for faster access to liquidity and optimal venue selection, according to Kepler's head of market structure & liquidity solutions, Robert Miller.
The partnership between BMLL and Kepler Cheuvreux has been strong since 2022, with BMLL's services contributing to Kepler's growth. As a result, Kepler's market share has risen significantly this year.
Looking ahead, both companies are optimistic about the future. Humphrey believes that firms like Kepler can be more dynamic in their infrastructure decisions, while Miller emphasises the importance of the execution experience in today's market. As Kepler continues to win new business and expand KCx Omni, the future of smart order routing in European equity markets looks bright.
References:
[1] BMLL Press Release. (2022). BMLL and Kepler Cheuvreux Partner to Accelerate the Development of KCx Omni, an Advanced Event-Driven Equities Trading System. [Online] Available at: https://bmll.io/bmll-and-kepler-cheuvreux-partner-to-accelerate-the-development-of-kcx-omni-an-advanced-event-driven-equities-trading-system/
[3] Kepler Cheuvreux Press Release. (2022). KCx Spark: Kepler Cheuvreux's New Smart Order Router Goes Live, Powered by BMLL Data. [Online] Available at: https://www.keplercheuvreux.com/en/news/kcx-spark-kepler-cheuvreuxs-new-smart-order-router-goes-live-powered-by-bmll-data/
- The use of BMLL's historical Level 3 data has enabled Kepler Cheuvreux to develop intelligent order routing algorithms, allowing best execution outcomes in the European equity market.
- By partnering with BMLL, Kepler Cheuvreux has been able to avoid the complex and costly task of building and maintaining data storage infrastructure, enabling the company to focus on developing cutting-edge trading technology.
- The partnership between BMLL and Kepler Cheuvreux has contributed to Kepler's growth, leading to a significant rise in the company's market share this year.
- Looking ahead, both BMLL and Kepler Cheuvreux are optimistic about the future, with BMLL's services being key to Kepler's continued success in smart order routing within European equity markets.
