NDD Glossary
ProcessPro

Waterfall Routing

A sequential order routing strategy that sends an order to the top-ranked LP first, and if rejected, cascades to the next LP in priority until filled or all options are exhausted.

Last updated: February 10, 2026
1

LPs are ranked by priority (based on historical fill quality, pricing, speed).

2

When an order arrives, it's sent to the #1 ranked LP first.

3

If the #1 LP rejects or doesn't respond within a timeout, the order cascades to #2.

4

This continues down the waterfall until the order is filled or all LPs are exhausted.

5

After each rejection, latency increases as the order moves down the cascade.