PDQ receives an order from a Liquidity Seeking subscriber (LS). At the secure PDQ processing center, the order is paused for 1-20 milliseconds(ms) and generates a Request for Trade ("RFT"). The RFT is simulcast to all algorithms residing at PDQ that are interested in responding with contra liquidity. The spawned liquidity from these algorithms is matched on a "
first-to-respond first-to-match basis" within the 20 ms window. The residual order is routed out or cancelled based on the order type.
PDQ has two types of subscribers: Liquidity Providers (LP) and Liquidity Seekers (LS). LP's use PDQ to algorithmically respond to and interact with live order flow, thereby eliminating their risk of adverse selection and allowing them to make markets of larger size. LS's sending orders to PDQ will be given the opportunity to discover contra liquidity and potential price improvement generated by LP proprietary algorithms hosted within the PDQ facility.
Liquidity Seekers route orders to PDQ ATS via their proprietary or participating 3rd party order management
PDQ ATS receives orders, pausing them for 1-20ms while generating a Request for Trade ('RFT') to Liquidity Provider Event Boards. RFT's are simulcast to the Event Boards of all active Liquidity Providers algorithm.
The Event Boards are servers running Liquidity Provider algorithms at PDQ. When an RFT is simulcast to all of the Event Boards the Liquidity Provider Algorithm can respond with contra liquidity within a 20ms window.
Liquidity Providers participate at PDQ ATS by programming Event Boards running at the PDQ facility to respond to RFT's with firm orders. The connection from the LP to the Event Boards is unidirectional so no order information can leave the PDQ Facility.
When a match occurs, executed trades are reported to a TRF on a first-to-respond first-to-match basis within the 20ms window.
If PDQ is not active in the symbol the order is routed out or canceled in 1 ms. If PDQ is active in the symbol but the order is not filled within 20 ms the order is routed out or canceled.
The PDQ Facility receives real time market data to ensure full Regulation NMS compliance.
The PDQ Facility is a secure processing center that not only receives and matches orders but also hosts and operates Liquidity Provider Algorithms.
Liquidity Providers participate at PDQ ATS by programming Event Boards running at the PDQ facility to respond to RFT's with firm orders. The connection from the LP to the Event Boards is unidirectional so no order information can leave the PDQ Facility.
