Matrix Executions has reported strong performance metrics for its Matrix QRX ATS, with data showing measurable price improvement and order execution quality gains for clients trading US listed options. The firm said the system helped reduce trading costs through better liquidity access and a two-stage auction model.
The proprietary Alternative Trading System supports institutional and retail-wholesaler Order Flow Providers by connecting them with a growing network of Liquidity Providing Organizations. Average price improvement reached $0.052 per contract, rising to $0.085 for market orders and $0.045 for marketable limit orders.
The company also recorded an overall filled E/Q score of 52.9 percent, with market orders at 47.7 percent and marketable limit orders at 54.1 percent. Matrix Executions noted that the auction-based approach and smart routing functions enhanced the probability of securing best execution outcomes across exchanges.
Matrix QRX ATS and compelling E/Q scores
Jordan Naylor, CEO of Matrix Executions, commented, “We are thrilled to witness the tangible benefits our clients are realizing with the Matrix QRX ATS. While significant growth potential remains, the quantifiable price improvement and compelling E/Q scores achieved in the initial launch phase highlights the technology’s performance.”
The QRX ATS allows for blind indications of interest, which LPOs competitively quote before orders route to multiple exchanges. This design reduces execution risk and supports more favorable pricing outcomes for both outright and complex order types.
Joe Corona, Chief Strategy Officer at Matrix, said, “The data from our ATS validates the efficacy of our technology and the strength of our liquidity partnerships. We are committed to further strengthening these relationships while enhancing our platform’s features to deliver superior value to our clients.”
Matrix Executions operates as an agency-only broker dealer headquartered in Chicago, focused on US equity and options markets.
Matrix Launched Access to GTH by Cboe
Matrix recently launched a full coverage, electronic access solution to the global trading hours session (GTH) offered by CBOE. The agency-only broker-dealer and trading technology provider now provides institutional traders with the ability to trade and hedge broad-based market volatility in S&P 500 Index, CBOE Volatility Index, and Mini-SPX Index listed options nearly 24 hours a day, 5 days a week.
Matrix’s GTH electronic access will allow traders to route and execute orders in the SPX, VIX, and XSP options during the global trading session from 7:15pm – 8:15am CST. The updated technology and coverage will also allow for extended US Equity trading between 3am-7pm CST. These extended hours are in addition to Matrix’s coverage in the US regular trading and options curb sessions.
GTH access allows domestic traders to initiate or hedge positions overnight and empowers global traders in the EMEA and APAC regions to interact in the US options market during their local trading hours. Matrix’s plans to incorporate Matrix QRX ATS technology into their GTH order routing strategy to add potential opportunities for liquidity enhancement and price improvement during the global session.
Matrix Launched ATS for US-Listed Options
Matrix Executions recently launched a new electronic Alternative Trading System for US-listed options, Matrix QRX ATS, to advance trading for institutional investors. With Matrix QRX ATS, the agency-only broker-dealer and trading technology provider aims to deliver advantages in price improvement, liquidity enhancement, and best execution practices.
According to the firm, the Matrix QRX ATS focuses on price improvement and liquidity enhancement. It uses advanced technology to provide traders with access to liquidity provider pricing and exchange auction mechanisms with ease. This functionality enhances price, liquidity, and trading cost outcomes, leading to a more efficient market experience.
The ATS is designed to boost liquidity in U.S. listed equity and index options by connecting a diverse pool of order flow and liquidity participants through electronic, blind indications of interest (IOIs). This approach enables traders to navigate the market anonymously without revealing direction or price, adding a layer of confidentiality. Liquidity participants can then compete for the order flow by providing two-way responses to these IOIs, inherently enhancing depth or pricing.
The QRX ATS is tightly integrated into the Matrix algo suite, making it highly flexible and available with low latency. It matches interests between participants within the ATS in a fraction of the standard exchange auction times, ensuring minimal impact on routing time to exchanges.
The QRX ATS incorporates multiple competitive order auctions at both system and exchange levels. Once a match is made, Matrix facilitates a paired crossing order, as all U.S. listed options trades must print on an exchange. These paired orders undergo additional price discovery or liquidity enhancement opportunities through native exchange auction mechanisms. By facilitating these auctions, Matrix Executions and the QRX ATS help participants secure optimal prices for trades of any size, without significantly impacting market structure or violating trade restrictions in both the Global (GTH) and Regular (RTH) trading sessions.