Kiwoom Securities launches smart order routing system for Korea's next trade exchange

Kiwoom Securities said on the 7th that it has become the first domestic securities company to establish its own "Smart Order Routing (SOR)" system. It noted that it has completed stability testing ahead of the launch of the alternative trading system (ATS) NextTrade.

NextTrade will open on the 4th of next month. The Korea Exchange will operate under a dual exchange system, and securities companies must consider price, transaction expense, and other factors to submit customer orders to the most favorable exchange. This is known as the "best execution obligation."

The key tool for the best execution obligation is the SOR system. The SOR system analyzes market conditions by exchange for investor orders and selects the best exchange to allocate and execute orders.

Kiwoom Securities explained that it has enhanced the customization features to differentiate itself from other SORs. For example, users can choose the exchange to execute orders based on the method of order execution. Additionally, it has been built with redundancy and ledger integration to ensure that orders can still be transmitted to the designated exchange even if a system failure occurs.

A Kiwoom Securities official said, "We will do our utmost to create an environment where customers can invest more conveniently and safely in response to the changed trading methods and hours brought about by the launch of the alternative exchange."