# How Does Smart Order Routing Logic Prioritize between Lit and Dark Venues? ▴ Question

**Published:** 2025-08-04
**Categories:** Question

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![Abstract layered forms visualize market microstructure, featuring overlapping circles as liquidity pools and order book dynamics. A prominent diagonal band signifies RFQ protocol pathways, enabling high-fidelity execution and price discovery for institutional digital asset derivatives, hinting at dark liquidity and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol.jpg)

![Angular dark planes frame luminous turquoise pathways converging centrally. This visualizes institutional digital asset derivatives market microstructure, highlighting RFQ protocols for private quotation and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-protocols-for-institutional-digital-assets.jpg)

## Concept

The core operational challenge of institutional trading is one of controlled information disclosure. Every order placed into the market is a signal, a quantum of intent that, if revealed improperly, can move prices against the originator before the full position is established. The system that governs this information flow, the very architecture of how an order interacts with the market, is the [Smart Order](https://prime.greeks.live/question/can-a-smart-order-router-effectively-blend-rfq-and-dark-pool-strategies-for-a-single-large-order/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Router (SOR).

Its function is to navigate the fragmented landscape of modern market structure, a terrain bifurcated into two primary domains ▴ lit venues and [dark venues](https://prime.greeks.live/area/dark-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The prioritization logic between these two is the central nervous system of execution strategy.

Lit venues, the traditional public exchanges, operate on a principle of full transparency. They display order books showing bids and offers, providing a clear, public map of discoverable liquidity. This transparency is their primary utility and also their principal vulnerability. Placing a large order on a lit book is a public declaration of intent, one that can be seen and reacted to by high-frequency market makers and opportunistic traders, leading to the erosion of execution price known as [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

Conversely, dark venues, which include [dark pools](https://prime.greeks.live/area/dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and various Alternative Trading Systems (ATS), function on a principle of opacity. Orders are submitted without being displayed publicly. Execution occurs when a matching buy and sell order arrive within the system, often at the midpoint of the prevailing National Best Bid and Offer (NBBO) from the [lit markets](https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

Their value proposition is the mitigation of [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). An institution can expose a large order to potential counterparties without signaling its full size and intent to the broader market, thereby reducing adverse price movement.

> Smart Order Routing is the automated process of directing trading orders to the optimal execution venue by analyzing a complex set of real-time market data and predefined strategic objectives.

The fundamental problem that necessitates SOR is the fragmentation of liquidity. Decades ago, liquidity for a given stock was concentrated on a single exchange. Today, it is scattered across dozens of [lit exchanges](https://prime.greeks.live/area/lit-exchanges/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and a growing number of private dark venues. An order must be intelligently dissected and routed to tap these disparate pools of liquidity effectively.

The SOR, therefore, is an automated system designed to solve this complex optimization problem in real-time. It analyzes [market data](https://prime.greeks.live/area/market-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) feeds, including prices, volumes, and order book depths, from all connected venues to determine the most effective path for an order.

The objective is to achieve “[best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite),” a concept that extends far beyond merely finding the best price. A truly sophisticated SOR logic balances a hierarchy of competing objectives:

- 
**[Price Improvement](https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ The ability to execute at a price superior to the current public quote. Dark pools are a primary mechanism for achieving this, as they often facilitate trades at the midpoint of the bid-ask spread.

- 
**Liquidity Capture** ▴ The imperative to fill the order in its entirety as efficiently as possible, which requires sweeping liquidity from multiple sources, both lit and dark.

- 
**Minimization of Market Impact** ▴ The mandate to execute a large order without causing significant, adverse price movement. This is the strategic domain of dark venues.

- 
**Speed of Execution** ▴ The velocity at which an order can be filled, a critical factor in fast-moving or volatile markets.

- 
**Cost Optimization** ▴ The calculus of minimizing explicit costs, such as exchange fees and clearing charges, while maximizing any available rebates for providing liquidity.

The prioritization between lit and dark venues is a dynamic, multi-faceted decision process. It is a calculated judgment made millisecond by millisecond, weighing the certainty of execution on a lit book against the potential for price improvement and anonymity in a [dark pool](https://prime.greeks.live/area/dark-pool/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This logic is the embodiment of the trader’s strategy, encoded into the very architecture of the market access system.

![A dark blue, precision-engineered blade-like instrument, representing a digital asset derivative or multi-leg spread, rests on a light foundational block, symbolizing a private quotation or block trade. This structure intersects robust teal market infrastructure rails, indicating RFQ protocol execution within a Prime RFQ for high-fidelity execution and liquidity aggregation in institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg)

![A multi-faceted crystalline form with sharp, radiating elements centers on a dark sphere, symbolizing complex market microstructure. This represents sophisticated RFQ protocols, aggregated inquiry, and high-fidelity execution across diverse liquidity pools, optimizing capital efficiency for institutional digital asset derivatives within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-institutional-digital-asset-derivatives-price-discovery.jpg)

## Strategy

The prioritization logic within a Smart Order Router is a direct expression of an institution’s trading philosophy. It represents a series of strategic decisions encoded into an automated workflow, designed to balance the fundamental trade-off between the certainty of lit markets and the potential advantages of dark venues. The choice of whether to query dark pools before lit exchanges, or how to allocate order flow between them, is a foundational element of execution strategy that dictates both performance and risk profile.

![A polished, cut-open sphere reveals a sharp, luminous green prism, symbolizing high-fidelity execution within a Principal's operational framework. The reflective interior denotes market microstructure insights and latent liquidity in digital asset derivatives, embodying RFQ protocols for alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-engine-prime-os-alpha-intelligence.jpg)

## Core Routing Philosophies

At a high level, SOR strategies can be categorized into distinct operational philosophies. The selection of a particular philosophy depends on the trader’s primary objective, whether it be aggressive liquidity capture, passive execution, or impact mitigation. These strategies are not mutually exclusive and are often blended into sophisticated hybrid models.

![An intricate, blue-tinted central mechanism, symbolizing an RFQ engine or matching engine, processes digital asset derivatives within a structured liquidity conduit. Diagonal light beams depict smart order routing and price discovery, ensuring high-fidelity execution and atomic settlement for institutional-grade trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-prime-os.jpg)

## Sequential Routing

A [sequential routing](https://prime.greeks.live/area/sequential-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) strategy, such as the CYCLE strategy employed by Cboe, targets one execution venue at a time. The SOR sends the full remaining quantity of an order to a single market center, awaits a fill or a rejection, and then moves to the next venue in its priority list. The priority is typically determined first by price ▴ targeting venues at the NBBO ▴ and then by secondary factors like the venue’s historical fill rate and speed.

This methodical approach ensures that the order book is swept in a controlled manner, seeking to fill the order completely at the best available prices across all protected markets. Its nature is deliberate and exhaustive, prioritizing completion of the order over raw speed.

![A central, intricate blue mechanism, evocative of an Execution Management System EMS or Prime RFQ, embodies algorithmic trading. Transparent rings signify dynamic liquidity pools and price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-framework-driving-high-fidelity-rfq-execution-and-optimized-market-microstructure-for-capital-efficiency.jpg)

## Parallel Routing

[Parallel routing](https://prime.greeks.live/area/parallel-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) strategies represent a more aggressive approach to liquidity capture. Instead of targeting venues one by one, the SOR splits the [parent order](https://prime.greeks.live/area/parent-order/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) into multiple “child” orders and sends them to several market centers simultaneously at the same price level. This technique, exemplified by Cboe’s Parallel D strategy, aims to exhaust all available liquidity at a specific price point as quickly as possible. Variations exist to tailor the aggression:

- 
**Parallel D** ▴ Routes to multiple venues at a single price level, continuing to the next price level only after the first is exhausted.

- 
**Parallel 2D** ▴ A faster, more aggressive variant that routes to multiple venues across multiple price levels simultaneously.

- 
**Parallel T** ▴ A specialized strategy that targets only the top-of-book quotes (the NBBO) at multiple venues.

The strength of parallel routing is its speed. Its primary risk is the potential for over-routing or signaling, where the sudden appearance of multiple small orders across the market reveals the footprint of a larger institutional order.

> The strategic decision to route to a dark pool first is a calculated trade-off, prioritizing potential price improvement and anonymity over the execution certainty of lit markets.

![Abstract spheres and linear conduits depict an institutional digital asset derivatives platform. The central glowing network symbolizes RFQ protocol orchestration, price discovery, and high-fidelity execution across market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-4.jpg)

## The Strategic Decision to Prioritize Dark Venues

The most critical strategic decision in SOR design is when and how to interact with dark liquidity. A brokerage operating its own dark pool faces a direct strategic question ▴ should it prioritize its internal venue to capture spreads and internalize flow, or should it route to external markets that may offer deeper liquidity? This decision extends to all SORs. Incorporating dark venues is not an afterthought; it is a deliberate tactic with profound implications.

![A central, blue-illuminated, crystalline structure symbolizes an institutional grade Crypto Derivatives OS facilitating RFQ protocol execution. Diagonal gradients represent aggregated liquidity and market microstructure converging for high-fidelity price discovery, optimizing multi-leg spread trading for digital asset options](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-11.jpg)

## What Is the Rationale for a Dark-First Model?

A “dark-first” or hybrid model that queries dark pools before or in parallel with lit markets is built on a clear set of strategic advantages. The Dark Routing Technique (DRT) described by Cboe provides a perfect template ▴ the router accesses its own book, then routes to participating dark pools, and only then does it route to protected lit markets using a standard parallel strategy. The logic is as follows:

- 
**Accessing Price Improvement** ▴ Dark pools offer the potential for execution at the midpoint of the bid-ask spread. By checking dark venues first, the SOR attempts to capture this price improvement for the client before interacting with the public quotes.

- 
**Sourcing Hidden Liquidity** ▴ Large blocks of shares often reside in dark pools, completely invisible to the public market. A dark-first strategy is an attempt to interact with this non-displayed liquidity and fill a significant portion of the order without any market impact.

- 
**Minimizing Information Leakage** ▴ Sending an order to a dark pool is a discreet inquiry. If no counterparty is found, the order is simply not executed, and the market remains unaware of the trading intent. This prevents other participants from detecting the order and trading ahead of it.

![Abstract forms depict institutional liquidity aggregation and smart order routing. Intersecting dark bars symbolize RFQ protocols enabling atomic settlement for multi-leg spreads, ensuring high-fidelity execution and price discovery of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-2.jpg)

## Comparative Framework of Routing Strategies

The choice of strategy is dictated by the specific characteristics of the order and the prevailing market conditions. The following table provides a comparative analysis of these core philosophies.

| Routing Philosophy | Primary Objective | Typical Use Case | Market Impact | Execution Speed | Complexity |
| --- | --- | --- | --- | --- | --- |
| Sequential (e.g. CYCLE) | Maximize fill probability; ensure best price across all markets. | Less liquid securities; orders where completion is prioritized over speed. | Low to Moderate | Slower | Low |
| Parallel (e.g. Parallel D) | Maximize speed of execution; aggressive liquidity capture at a price level. | Highly liquid securities; urgent orders reacting to market news. | Moderate to High | Faster | Moderate |
| Dark-First Hybrid (e.g. Parallel D + DRT) | Minimize market impact; seek price improvement while capturing liquidity. | Large institutional block orders; algorithmic strategies (e.g. VWAP). | Lowest | Variable | High |

Ultimately, the strategy is not static. The most sophisticated SORs are dynamic, adapting their routing logic based on real-time feedback. If dark pools are providing significant liquidity, the SOR may increase the flow directed to them.

If market volatility spikes, the logic may shift to a more aggressive, lit-market-focused parallel strategy to ensure execution speed. This dynamic capability is what transforms a simple router into a truly “smart” execution system.

![A sleek, futuristic object with a glowing line and intricate metallic core, symbolizing a Prime RFQ for institutional digital asset derivatives. It represents a sophisticated RFQ protocol engine enabling high-fidelity execution, liquidity aggregation, atomic settlement, and capital efficiency for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-for-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

![A precision instrument probes a speckled surface, visualizing market microstructure and liquidity pool dynamics within a dark pool. This depicts RFQ protocol execution, emphasizing price discovery for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-flow.jpg)

## Execution

The execution phase of [smart order routing](https://prime.greeks.live/area/smart-order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is where strategic theory is translated into operational reality. This is a high-frequency, data-intensive process governed by complex algorithms that dissect, route, and reassemble orders in milliseconds. The architecture of this process determines the ultimate quality of execution, moving beyond simple venue selection to a granular, quantitative assessment of [market microstructure](https://prime.greeks.live/area/market-microstructure/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

![A sleek, multi-layered platform with a reflective blue dome represents an institutional grade Prime RFQ for digital asset derivatives. The glowing interstice symbolizes atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-protocol-for-institutional-digital-asset-derivatives-1.jpg)

## The Operational Playbook of a Hybrid SOR

Consider the execution lifecycle of a large institutional order ▴ “Buy 200,000 shares of security XYZ” within a system that prioritizes dark liquidity. The process is a multi-stage cascade designed to minimize footprint and maximize fill quality.

- 
**Order Ingestion and Parameterization** ▴ The SOR receives the parent order from the Order Management System (OMS). It is tagged with key parameters ▴ size (200,000 shares), side (Buy), limit price, and the overarching execution strategy (e.g. Volume-Weighted Average Price – VWAP).

- 
**Internal Liquidity Check** ▴ The first action is to query the firm’s own internal dark pool or crossing network. This is the lowest-cost, lowest-impact source of liquidity. Any portion of the order that can be filled internally is immediately executed.

- 
**Dark Aggregator Sweep** ▴ The SOR sends non-committal “ping” messages or Immediate-or-Cancel (IOC) [child orders](https://prime.greeks.live/area/child-orders/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to a prioritized list of external dark pools. This is a hunt for hidden, non-displayed liquidity. The system is not posting the order; it is aggressively “taking” available liquidity that matches its price criteria. This sweep is often performed in parallel across multiple dark venues.

- 
**Lit Market Analysis** ▴ Simultaneously, the SOR’s analytical engine consumes real-time data feeds from all lit exchanges, constructing a composite, depth-of-book view of displayed liquidity. It analyzes the size and price of all visible bids and offers.

- 
**Intelligent Order Splitting** ▴ Based on the remaining order size and the analysis of lit and dark liquidity, the SOR’s algorithm now makes a critical decision. It splits the remaining parent order into numerous child orders. This is not a random division. The size and destination of each child order are calculated based on the venue’s historical performance, fees, and the desire to avoid triggering size-based detection algorithms on any single exchange.

- 
**Concurrent Lit and Dark Execution** ▴ The child orders are now routed using a multi-pronged approach:

<li>A portion of the order may be posted passively on different lit exchanges at the bid price. The goal here is to capture liquidity from sellers hitting the bid and to earn liquidity-provider rebates.

- Another portion may be used to aggressively “take” liquidity from the offer side of lit markets if the VWAP algorithm determines the price is advantageous.

- The SOR continues to periodically ping dark pools with the remaining unexecuted portion, seeking new blocks of hidden liquidity that may have emerged.

</li>
- 
**Dynamic Rebalancing** ▴ As child orders receive fills, the information is fed back to the parent order in real-time. The SOR constantly re-evaluates its strategy, adjusting the size and destination of the remaining child orders based on the fills received and changes in market conditions. This feedback loop is the core of the router’s “intelligence.”

![Geometric forms with circuit patterns and water droplets symbolize a Principal's Prime RFQ. This visualizes institutional-grade algorithmic trading infrastructure, depicting electronic market microstructure, high-fidelity execution, and real-time price discovery](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-engine-prime-os-microstructure-analytics.jpg)

## Quantitative Modeling and Data Analysis

The decision-making at each stage of the execution playbook is driven by a quantitative model that scores and ranks each potential venue. This is not a static ranking; it is a dynamic matrix updated in real-time.

![A sophisticated, modular mechanical assembly illustrates an RFQ protocol for institutional digital asset derivatives. Reflective elements and distinct quadrants symbolize dynamic liquidity aggregation and high-fidelity execution for Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-architecture.jpg)

## How Does an SOR Quantitatively Prioritize Venues?

An SOR uses a weighted scoring system to rank execution venues. The model incorporates multiple factors, each with an assigned weight based on the trader’s chosen strategy (e.g. a “Minimize Impact” strategy would heavily weight the Information Leakage Score).

| Venue | Venue Type | Avg. Price Improvement (bps) | Historical Fill Rate (%) | Taker Fee ($/share) | Information Leakage Score (1-10) | Weighted Priority Score |
| --- | --- | --- | --- | --- | --- | --- |
| Internal ATS | Dark | 0.50 | 15% | $0.0000 | 1 | 9.8 |
| Dark Pool A | Dark | 0.45 | 8% | $0.0005 | 3 | 8.5 |
| Exchange X | Lit | 0.00 | 95% | $0.0030 | 9 | 7.2 |
| Exchange Y | Lit | 0.00 | 98% | $0.0028 | 8 | 7.5 |
| Dark Pool B | Dark | 0.30 | 5% | $0.0010 | 4 | 6.9 |

In this model, the SOR would prioritize the Internal ATS, followed by Dark Pool A, even though the lit exchanges offer a much higher probability of an immediate fill. The logic prioritizes the significant potential for price improvement and the low risk of information leakage offered by the dark venues.

![A precision-engineered, multi-layered system architecture for institutional digital asset derivatives. Its modular components signify robust RFQ protocol integration, facilitating efficient price discovery and high-fidelity execution for complex multi-leg spreads, minimizing slippage and adverse selection in market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-platform.jpg)

## System Integration and Technological Architecture

This entire process is underpinned by a sophisticated technological infrastructure. The key components include:

- 
**Market Data Feeds** ▴ Direct, low-latency data connections to all exchanges and ATSs.

- 
**FIX Protocol Engine** ▴ The Financial Information eXchange (FIX) protocol is the messaging standard used to communicate order instructions, modifications, and execution reports between the SOR and the trading venues.

- 
**Consolidated Order Book** ▴ A system that aggregates market data from all venues to create a single, comprehensive view of market liquidity.

- 
**The SOR Engine** ▴ The core software containing the routing logic, quantitative models, and decision-making algorithms.

- 
**Post-Trade Analytics** ▴ Systems for [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) that measure the performance of the SOR against benchmarks like VWAP, assessing execution quality and identifying areas for algorithmic refinement.

The execution of smart [order routing](https://prime.greeks.live/area/order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a testament to the fusion of quantitative finance and high-performance computing. It is a system designed to navigate a fragmented and complex market structure, making thousands of optimized decisions per second to execute an institutional trader’s strategic intent with precision and control.

![Internal mechanism with translucent green guide, dark components. Represents Market Microstructure of Institutional Grade Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-engine-for-high-fidelity-execution.jpg)

## References

- “How Smart Order Routing Works.” FasterCapital, 2023.

- “Dark & Hidden Liquidity Strategic Smart Order Routing.” Cboe Global Markets, 2011.

- “Smart order routing takes DMA to a new level.” Nomura Research Institute, 2008.

- “SMART ORDER ROUTING For Today’s Fast Markets.” OMEX Systems, 2009.

- Hettiarachi, Ashton. “The Complete Guide Smart Order Routing (SOR).” Medium, 28 August 2022.

- Harris, Larry. “Trading and Exchanges ▴ Market Microstructure for Practitioners.” Oxford University Press, 2003.

- O’Hara, Maureen. “Market Microstructure Theory.” Blackwell Publishers, 1995.

![Clear sphere, precise metallic probe, reflective platform, blue internal light. This symbolizes RFQ protocol for high-fidelity execution of digital asset derivatives, optimizing price discovery within market microstructure, leveraging dark liquidity for atomic settlement and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-1.jpg)

## Reflection

![Abstract geometric forms depict a Prime RFQ for institutional digital asset derivatives. A central RFQ engine drives block trades and price discovery with high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimizing-market-microstructure-for-high-fidelity-execution.jpg)

## Calibrating the Execution Architecture

The architecture of a smart order router is a mirror. It reflects an institution’s deepest assumptions about market behavior, risk tolerance, and the value of information. Understanding its mechanics is the first step. The critical subsequent step is introspection.

Does your current execution framework truly align with your strategic mandate? Is the logic governing the flow of your orders a legacy system, or is it a dynamic, data-driven asset calibrated to the unique microstructure of the instruments you trade?

The knowledge of how an SOR prioritizes venues provides a lens through which to examine your own operational protocols. The data from every fill, every missed opportunity, and every basis point of price improvement is a signal. A superior execution framework is one that not only processes these signals but learns from them, constantly refining the quantitative models and strategic weightings that define its character. The ultimate edge is found in building a system of intelligence where technology, strategy, and constant analysis converge to create a truly adaptive and responsive execution capability.

![A sleek device showcases a rotating translucent teal disc, symbolizing dynamic price discovery and volatility surface visualization within an RFQ protocol. Its numerical display suggests a quantitative pricing engine facilitating algorithmic execution for digital asset derivatives, optimizing market microstructure through an intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-for-digital-asset-rfq-execution-system-with-smart-liquidity-routing.jpg)

## Glossary

<a href="https://prime.greeks.live/question/can-a-smart-order-router-effectively-blend-rfq-and-dark-pool-strategies-for-a-single-large-order/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, angled object, featuring a dark blue sphere, cream disc, and multi-part base, embodies a Principal's operational framework. This represents an institutional-grade RFQ protocol for digital asset derivatives, facilitating high-fidelity execution and price discovery within market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-rfq-for-institutional-digital-asset-derivatives-execution.jpg)

## Smart Order

A Smart Order Router systematically blends dark pool anonymity with RFQ certainty to minimize impact and secure liquidity for large orders. </a><a href="https://prime.greeks.live/area/dark-venues/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting translucent aqua blades, etched with algorithmic logic, symbolize multi-leg spread strategies and high-fidelity execution. Positioned over a reflective disk representing a deep liquidity pool, this illustrates advanced RFQ protocols driving precise price discovery within institutional digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-algorithmic-execution-microstructure-for-price-discovery.jpg)

## Dark Venues

Meaning ▴ Dark venues are alternative trading systems or private liquidity pools where orders are matched and executed without pre-trade transparency, meaning bid and offer prices are not publicly displayed before the trade occurs. </a><a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sharp, dark, precision-engineered element, indicative of a targeted RFQ protocol for institutional digital asset derivatives, traverses a secure liquidity aggregation conduit. This interaction occurs within a robust market microstructure platform, symbolizing high-fidelity execution and atomic settlement under a Principal's operational framework for best execution](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

## Market Impact

Meaning ▴ Market impact, in the context of crypto investing and institutional options trading, quantifies the adverse price movement caused by an investor's own trade execution. </a><a href="https://prime.greeks.live/area/lit-markets/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision metallic mechanism with radiating blades and blue accents, representing an institutional-grade Prime RFQ for digital asset derivatives. It signifies high-fidelity execution via RFQ protocols, leveraging dark liquidity and smart order routing within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-engine.jpg)

## Lit Markets

Meaning ▴ Lit Markets, in the plural, denote a collective of trading venues in the crypto landscape where full pre-trade transparency is mandated, ensuring that all executable bids and offers, along with their respective volumes, are openly displayed to all market participants. </a><a href="https://prime.greeks.live/area/dark-pools/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent glass sphere rests precisely on a metallic rod, connecting a grey structural element and a dark teal engineered module with a clear lens. This symbolizes atomic settlement of digital asset derivatives via private quotation within a Prime RFQ, showcasing high-fidelity execution and capital efficiency for RFQ protocols and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/architecting-high-fidelity-execution-for-institutional-digital-asset-derivatives-rfq-protocols-and-systemic-liquidity-aggregation.jpg)

## Dark Pools

Meaning ▴ Dark Pools are private trading venues within the crypto ecosystem, typically operated by large institutional brokers or market makers, where significant block trades of cryptocurrencies and their derivatives, such as options, are executed without pre-trade transparency. </a><a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Transparent geometric forms symbolize high-fidelity execution and price discovery across market microstructure. A teal element signifies dynamic liquidity pools for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-institutional-digital-asset-derivatives-1.jpg)

## Information Leakage

Meaning ▴ Information leakage, in the realm of crypto investing and institutional options trading, refers to the inadvertent or intentional disclosure of sensitive trading intent or order details to other market participants before or during trade execution. </a><a href="https://prime.greeks.live/area/lit-exchanges/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A pristine white sphere, symbolizing an Intelligence Layer for Price Discovery and Volatility Surface analytics, sits on a grey Prime RFQ chassis. A dark FIX Protocol conduit facilitates High-Fidelity Execution and Smart Order Routing for Institutional Digital Asset Derivatives RFQ protocols, ensuring Best Execution](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocols-optimizing-high-fidelity-execution-via-prime-os-intelligence.jpg)

## Lit Exchanges

Meaning ▴ Lit Exchanges are transparent trading venues where all market participants can view real-time order books, displaying outstanding bids and offers along with their respective quantities. </a><a href="https://prime.greeks.live/area/market-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dynamic visual representation of an institutional trading system, featuring a central liquidity aggregation engine emitting a controlled order flow through dedicated market infrastructure. This illustrates high-fidelity execution of digital asset derivatives, optimizing price discovery within a private quotation environment for block trades, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principal-os-driving-high-fidelity-execution-for-digital-asset-derivatives-through-optimized-rfq-protocols-and-smart-order-routing.jpg)

## Market Data

Meaning ▴ Market data in crypto investing refers to the real-time or historical information regarding prices, volumes, order book depth, and other relevant metrics across various digital asset trading venues. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## Best Execution

Meaning ▴ Best Execution, in the context of cryptocurrency trading, signifies the obligation for a trading firm or platform to take all reasonable steps to obtain the most favorable terms for its clients' orders, considering a holistic range of factors beyond merely the quoted price. </a><a href="https://prime.greeks.live/area/price-improvement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Translucent teal panel with droplets signifies granular market microstructure and latent liquidity in digital asset derivatives. Abstract beige and grey planes symbolize diverse institutional counterparties and multi-venue RFQ protocols, enabling high-fidelity execution and price discovery for block trades via aggregated inquiry](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-liquidity-aggregation.jpg)

## Price Improvement

Meaning ▴ Price Improvement, within the context of institutional crypto trading and Request for Quote (RFQ) systems, refers to the execution of an order at a price more favorable than the prevailing National Best Bid and Offer (NBBO) or the initially quoted price. </a><a href="https://prime.greeks.live/area/dark-pool/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, dark grey mechanism, pivoted centrally, embodies an RFQ protocol engine for institutional digital asset derivatives. Diagonally intersecting planes of dark, beige, teal symbolize diverse liquidity pools and complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-powering-high-fidelity-execution-for-multi-leg-spreads-portfolio-margin-and-atomic-settlement-via-prime-os-for-block-trades.jpg)

## Dark Pool

Meaning ▴ A Dark Pool is a private exchange or alternative trading system (ATS) for trading financial instruments, including cryptocurrencies, characterized by a lack of pre-trade transparency where order sizes and prices are not publicly displayed before execution. </a><a href="https://prime.greeks.live/area/sequential-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract institutional-grade Crypto Derivatives OS. Metallic trusses depict market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-market-microstructure-optimizing-rfq-protocols-for-high-fidelity-execution-via-prime-os.jpg)

## Sequential Routing

Meaning ▴ Sequential Routing is an order routing strategy where a trade order is sent to a series of market venues or liquidity providers one after another, in a predetermined sequence, until the order is fully executed or its conditions are met. </a><a href="https://prime.greeks.live/area/parallel-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A clear glass sphere, symbolizing a precise RFQ block trade, rests centrally on a sophisticated Prime RFQ platform. The metallic surface suggests intricate market microstructure for high-fidelity execution of digital asset derivatives, enabling price discovery for institutional grade trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-2.jpg)

## Parallel Routing

Meaning ▴ Parallel Routing, in the context of crypto trading systems architecture, denotes a network communication or transaction processing strategy where data or requests are simultaneously sent along multiple independent paths or processed by several computational units. </a><a href="https://prime.greeks.live/area/parent-order/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek teal and beige forms converge, embodying institutional digital asset derivatives platforms. A central RFQ protocol hub with metallic blades signifies high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-microstructure.jpg)

## Parent Order

Meaning ▴ A Parent Order, within the architecture of algorithmic trading systems, refers to a large, overarching trade instruction initiated by an institutional investor or firm that is subsequently disaggregated and managed by an execution algorithm into numerous smaller, more manageable "child orders. </a><a href="https://prime.greeks.live/area/market-microstructure/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A complex, multi-faceted crystalline object rests on a dark, reflective base against a black background. This abstract visual represents the intricate market microstructure of institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-execution-architecture.jpg)

## Market Microstructure

Meaning ▴ Market Microstructure, within the cryptocurrency domain, refers to the intricate design, operational mechanics, and underlying rules governing the exchange of digital assets across various trading venues. </a><a href="https://prime.greeks.live/area/smart-order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Visualizing institutional digital asset derivatives market microstructure. A central RFQ protocol engine facilitates high-fidelity execution across diverse liquidity pools, enabling precise price discovery for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-across-multi-asset-liquidity.jpg)

## Smart Order Routing

Meaning ▴ Smart Order Routing (SOR), within the sophisticated framework of crypto investing and institutional options trading, is an advanced algorithmic technology designed to autonomously direct trade orders to the optimal execution venue among a multitude of available exchanges, dark pools, or RFQ platforms. </a><a href="https://prime.greeks.live/area/child-orders/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Beige module, dark data strip, teal reel, clear processing component. This illustrates an RFQ protocol's high-fidelity execution, facilitating principal-to-principal atomic settlement in market microstructure, essential for a Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-protocol-execution-engine.jpg)

## Child Orders

Meaning ▴ Child Orders, within the sophisticated architecture of smart trading systems and execution management platforms in crypto markets, refer to smaller, discrete orders generated from a larger parent order. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA), in the context of cryptocurrency trading, is the systematic process of quantifying and evaluating all explicit and implicit costs incurred during the execution of digital asset trades. </a><a href="https://prime.greeks.live/area/order-routing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Curved, segmented surfaces in blue, beige, and teal, with a transparent cylindrical element against a dark background. This abstractly depicts volatility surfaces and market microstructure, facilitating high-fidelity execution via RFQ protocols for digital asset derivatives, enabling price discovery and revealing latent liquidity for institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/optimized-rfq-protocol-dynamics-for-institutional-crypto-derivatives.jpg)

## Order Routing

Meaning ▴ Order Routing is the critical process by which a trading order is intelligently directed to a specific execution venue, such as a cryptocurrency exchange, a dark pool, or an over-the-counter (OTC) desk, for optimal fulfillment. </a>

**Tags:** [Dark Pools](https://options.greeks.live/area/dark-pools/), [Price Improvement](https://options.greeks.live/area/price-improvement/), [Transaction Cost Analysis](https://options.greeks.live/area/transaction-cost-analysis/), [Sequential Routing](https://options.greeks.live/area/sequential-routing/), [Lit Markets](https://options.greeks.live/area/lit-markets/), [Lit Exchanges](https://options.greeks.live/area/lit-exchanges/)	

## Discover More

- 
### [How Has the Rise of Dark Pools Impacted the Process of Price Discovery on Public Exchanges?](https://options.greeks.live/question/how-has-the-rise-of-dark-pools-impacted-the-process-of-price-discovery-on-public-exchanges/)
![Abstract institutional-grade Crypto Derivatives OS. Metallic trusses depict market microstructure. Transparent discs symbolize liquidity pools, implied volatility, and dark pools, crucial for RFQ protocols and block trade execution. This visualizes high-fidelity execution and price discovery for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-market-microstructure-optimizing-rfq-protocols-for-high-fidelity-execution-via-prime-os.jpg)

Dark pools impact price discovery by segmenting order flow, which can enhance signal quality on lit exchanges.

- 
### [What Is the Difference in SOR Routing Logic between a Lit Exchange and a Dark Pool?](https://options.greeks.live/question/what-is-the-difference-in-sor-routing-logic-between-a-lit-exchange-and-a-dark-pool/)
![A futuristic apparatus visualizes high-fidelity execution for digital asset derivatives. A transparent sphere represents a private quotation or block trade, balanced on a teal Principal's operational framework, signifying capital efficiency within an RFQ protocol. The sharp upper blade implies price discovery and best execution across market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-via-prime-os.jpg)

An SOR's logic adapts from aggressive, transparent price optimization on lit venues to defensive, probabilistic stealth in dark pools.

- 
### [How Do Smart Order Routers Prioritize Execution Venues in Volatile Conditions?](https://options.greeks.live/question/how-do-smart-order-routers-prioritize-execution-venues-in-volatile-conditions/)
![Abstract visualization of institutional digital asset RFQ protocols. Intersecting elements symbolize high-fidelity execution slicing dark liquidity pools, facilitating precise price discovery. This depicts advanced Crypto Derivatives OS market microstructure, powered by an intelligence layer for Principal Trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-intelligence-layer.jpg)

A Smart Order Router prioritizes venues in volatile conditions by dynamically weighting execution speed and certainty over cost.

- 
### [How Do Dark Pools and Alternative Trading Systems Fit into an Institutional Best Execution Strategy?](https://options.greeks.live/question/how-do-dark-pools-and-alternative-trading-systems-fit-into-an-institutional-best-execution-strategy/)
![Translucent teal panel with droplets signifies granular market microstructure and latent liquidity in digital asset derivatives. Abstract beige and grey planes symbolize diverse institutional counterparties and multi-venue RFQ protocols, enabling high-fidelity execution and price discovery for block trades via aggregated inquiry.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-liquidity-aggregation.jpg)

Dark pools and ATS are vital components in a best execution strategy, enabling institutions to minimize market impact by executing large orders anonymously.

- 
### [How Do Dark Pools Affect Price Discovery in Transparent Markets?](https://options.greeks.live/question/how-do-dark-pools-affect-price-discovery-in-transparent-markets/)
![Transparent geometric forms symbolize high-fidelity execution and price discovery across market microstructure. A teal element signifies dynamic liquidity pools for digital asset derivatives. An opaque dome embodies principal's capital for private quotation and portfolio margin, depicting RFQ protocols on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-institutional-digital-asset-derivatives-1.jpg)

Dark pools alter price discovery by segmenting order flow, which can enhance or impair market efficiency depending on trader composition.

- 
### [What Role Does a Smart Order Router Play in Justifying Complex Trading Decisions?](https://options.greeks.live/question/what-role-does-a-smart-order-router-play-in-justifying-complex-trading-decisions/)
![Modular, metallic components interconnected by glowing green channels represent a robust Principal's operational framework for institutional digital asset derivatives. This signifies active low-latency data flow, critical for high-fidelity execution and atomic settlement via RFQ protocols across diverse liquidity pools, ensuring optimal price discovery.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution.jpg)

A Smart Order Router provides the auditable, data-driven logic to translate complex trading strategies into provably optimal execution pathways.

- 
### [What Are the Key Challenges in Implementing a MiFID II Compliant SOR?](https://options.greeks.live/question/what-are-the-key-challenges-in-implementing-a-mifid-ii-compliant-sor/)
![A fractured, polished disc with a central, sharp conical element symbolizes fragmented digital asset liquidity. This Principal RFQ engine ensures high-fidelity execution, precise price discovery, and atomic settlement within complex market microstructure, optimizing capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-unifying-fragmented-digital-asset-derivatives-liquidity-for-best-execution.jpg)

A MiFID II SOR is an audited decision engine architected to translate regulatory duties into optimal execution across fragmented markets.

- 
### [How Does Midpoint Execution in Dark Pools Affect Overall Market Price Discovery?](https://options.greeks.live/question/how-does-midpoint-execution-in-dark-pools-affect-overall-market-price-discovery/)
![A sophisticated system's core component, representing an Execution Management System, drives a precise, luminous RFQ protocol beam. This beam navigates between balanced spheres symbolizing counterparties and intricate market microstructure, facilitating institutional digital asset derivatives trading, optimizing price discovery, and ensuring high-fidelity execution within a prime brokerage framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-10.jpg)

Midpoint execution in dark pools systematically trades execution certainty for reduced signaling risk and potential price improvement.

- 
### [In What Ways Does the Segmentation of Liquidity Pools Impact Price Discovery in the Broader Market?](https://options.greeks.live/question/in-what-ways-does-the-segmentation-of-liquidity-pools-impact-price-discovery-in-the-broader-market/)
![A complex, multi-layered electronic component with a central connector and fine metallic probes. This represents a critical Prime RFQ module for institutional digital asset derivatives trading, enabling high-fidelity execution of RFQ protocols, price discovery, and atomic settlement for multi-leg spreads with minimal latency.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-rfq-engine-driving-best-execution-and-liquidity.jpg)

Segmentation alters price discovery by disaggregating order flow, which requires advanced routing systems to reconstitute a complete market view for optimal execution.

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    "dateModified": "2025-10-25T04:54:45+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-high-fidelity-execution-architecture.jpg",
        "caption": "This abstract composition visualizes a sophisticated Crypto Derivatives OS for institutional-grade trading. The central nexus embodies an Execution Management System driving smart order routing and RFQ protocols for Bitcoin options and Ethereum futures. It signifies high-fidelity execution across fragmented dark liquidity and lit markets, ensuring best execution and capital efficiency. Modular structures denote atomic settlement and systemic risk mitigation, critical for portfolio margin and delta hedging strategies."
    },
    "keywords": [
        "Best Execution",
        "Child Orders",
        "Dark Pool",
        "Dark Pools",
        "Dark Venues",
        "Information Leakage",
        "Liquidity Fragmentation",
        "Lit Exchanges",
        "Lit Markets",
        "Market Data",
        "Market Impact",
        "Market Microstructure",
        "Order Routing",
        "Parallel Routing",
        "Parent Order",
        "Price Improvement",
        "Sequential Routing",
        "Smart Order Routing",
        "Transaction Cost Analysis",
        "Venue Analysis"
    ]
}
```

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            "@type": "Question",
            "name": "What Is The Rationale For A Dark-First Model?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A \"dark-first\" or hybrid model that queries dark pools before or in parallel with lit markets is built on a clear set of strategic advantages. The Dark Routing Technique (DRT) described by Cboe provides a perfect template: the router accesses its own book, then routes to participating dark pools, and only then does it route to protected lit markets using a standard parallel strategy. The logic is as follows:"
            }
        },
        {
            "@type": "Question",
            "name": "How Does An SOR Quantitatively Prioritize Venues?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "An SOR uses a weighted scoring system to rank execution venues. The model incorporates multiple factors, each with an assigned weight based on the trader's chosen strategy (e.g. a \"Minimize Impact\" strategy would heavily weight the Information Leakage Score)."
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```


---

**Original URL:** https://options.greeks.live/question/how-does-smart-order-routing-logic-prioritize-between-lit-and-dark-venues/
