Smart Order Routing (SOR)

Smart Order Routing (SOR) is an automated trade execution technology that analyses available liquidity across multiple exchanges and trading venues in real time and routes each order—or fragments of a large order—to the venue offering the best price and execution quality. In India, where the same securities are listed on both NSE and BSE, SOR systems evaluate bid-ask spreads, available depth, and transaction costs across both exchanges before routing each order. This technology is particularly valuable for institutional investors executing large orders, as it minimises market impact and slippage while maximising execution efficiency across fragmented liquidity pools.