MBT Institutional | Execution Services

MBTX SMART ROUTE

DIRECT ACCESS

WHAT WE TRADE

TRADE DESK

EXECUTION SERVICES | MBTX Smart Route

MBTX is a one-button direct access smart order route that intelligently harnesses the power of direct access trading by scanning market makers, ECNs, exchanges, and hidden pools of liquidity for the best available execution.

The MBTX smart route offers a variety of advanced order types for equities, options¹, and futures¹ which provide tremendous flexibility when placing your trades.

Plus Orders, also referred to as "combination" orders, actually combine two different order types. Upon execution of any part of the initial order, the second order is triggered on the opposite side for the same number of shares².

««« Click on any link above for a description »»»

1. All order types may not be available for options and futures. The available order types for options trading are currently limit, market, stop market, stop limit, and trailing stop.

Unlike ECNs and exchanges which may only look at the Level II montage or regional quotes to "match" posted orders, MBTX, MB Trading's proprietary smart order route, actively seeks liquidity that can and cannot be seen.

MBTX is not an ECN
MB Trading is a broker dealer with sophisticated systems and algorithms developed and maintained by some of the leading industry programmers. MB Trading understands how aggregating ECNs, market makers, and exchanges can be leveraged to create a "super route" capable of overcoming the shortfalls of each individual route. By combining all possible execution methods into one route, we are able to provide extraordinary order efficiency as well as several undeniable benefits:

+  Price improvements are invisible in the marketplace
+  One-button order entry that allows concentration on trading strategy, not trade routing
+  Advanced order types from all ECNs and exchanges within one route
+  User defined control of Speed vs. Price improvement setting

How MBTX works
MBTX offers two definable methods of seeking the best execution: speed and price. ECNs (and some exchanges) generally offer the user a Fast/Lean or IOC order through which they match orders held in their book(s) as quickly as possible, but MBTX is capable of exceeding the functionality of any one ECN to provide you an increased fill opportunity that does not require you to sacrifice quantity for speed. MBTX default mode quickly seeks price improvements while simultaneously attempting to complete the order. MBTX routes to multiple liquidity pools at various price levels in search of not only a "limit or better" price, but also an entire fill for the order. Unlike other ECNs which spray, slice, or spread an order, thereby limiting the shares that will be filled, MBTX seeks not only best price but also as many shares possible at or better than the NBBO (National Best Bid/Offer). Once the entire pool of liquidity at a particular limit price is exhausted, MBTX then moves to the next level. The MBTX default "Save" setting has saved clients an average of $.0040 per share in the open market.

Our latest addition to MBTX is the "speed" setting, which seeks liquidity, whether hidden or displayed, up to the limit price of the order. Working much like "MBTX Save", "MBTX Speed" uses an order's limit price as its maximum fill price as opposed to the NBBO. Price improvements are computed against the NBBO for analysis purposes, but this new algorithm insures the most expeditious fill possible, at that moment, without losing the opportunity to actively seek hidden liquidity or ECN posts.

Additionally, MBTX determines where a security trades (NYSE, AMEX, Nasdaq, OTCBB, etc.) and routes the order, based on our proprietary algorithms, to the destinations where it has the best chance of execution. There is no need for user intervention for route selection. The entire process from order receipt to algorithm routing determination takes approximately 5 milliseconds. Compare this to the amount of time it takes you to look at a symbol, load it into the order entry screen, select the appropriate route, and press the buy/sell button. Even if you executed perfectly 100% of the time, MBTX's efficiency in working through all routes would be faster than you doing one Cancel Replace or Change order to another route, assuming you selected the right route in the first place.

MBTX is a powerful order route, offering the ability to take advantage of liquidity on all ECNs, both hidden and displayed. The ease of use is unmatched and the price improvements, if available, are hard to beat.

MBT Institutional is a division of MB Trading. Securities products are offered through MB Trading, member FINRA, SIPC. MB Trading Futures, Inc. (MBTF) is CFTC registered FCMs and member of NFA. MBTF offers execution and settlement services for futures based products, as well as offer off-exchange foreign currency (forex) products through MB Trading. Trading in futures, options and forex is speculative in nature and not appropriate for all investors. Investors should only use risk capital when trading futures, options and forex because there is always the risk of substantial loss. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors. �2007, All Rights Reserved