NDD Glossary
ProcessIntermediate

Order Routing

The mechanism by which a broker directs client orders to specific liquidity providers or execution venues based on predefined rules.

Last updated: February 1, 2026
1

Client submits an order through the trading platform.

2

The broker's order management system receives and validates the order.

3

Routing rules determine the destination: single LP, multiple LPs, or internal book.

4

The order is transmitted to the selected venue(s) via FIX protocol or proprietary API.

5

Execution report is received from the venue and relayed back to the client.