TT Premium Order Types

This feature is available to preview in the UAT environment. It will be available in the production environment in the near future.

TT Premium Order Types

TT Premium Order Types Overview

What is a TT Premium Order Type?

Similar to TT Order Types, the TT Premium Order Types use synthetic orders to manage the submission and execution of other orders in the market. TT Premium Order Types provide more robust order execution functionality than exchanges support natively. They offer order types not supported by exchanges or provide more options than exchange-native order types provide.

A TT Premium Order Type order comprises two parts:

  • A synthetic parent order that runs on an Algo Server that is usually co-located with the exchange on which the instrument trades. The parent order manages the entry and execution of its child orders.
  • Native child orders that are sent to an exchange for order execution based on the selected TT Premium Order Type and its configuration parameters.

Note: At this time, TT Premium Order Types are not available in the Prod-SIM environment.

TT Premium Order Type Features

TT Premium Order Types offer the following features:

  • Historical/Empirical Trade Distributions: Automated child order sizing based on synthetic objective and product to blend in with “normal” market activity.
  • Matching Engine Awareness: Product-specific order sizing logic with respect to Pro-Rata, FIFO, Split, etc. for optimal interaction with exchange matching algorithm.
  • Product-specific Forecasting: Volatility and volume forecasts driving benchmark order logic include built-in awareness of seasonality and events to optimize forecasts.
  • Multiple Benchmark Strategies: Variety of benchmark order types allows for aligning execution with the overall trading objective.
  • Post-Trade Analytics: Performance reports and reviews with product experts to review, discuss and optimize usage for continuous improvement of execution processes.
  • Simplified Trading Workflow: Create templates and custom action buttons for one-click initialization minimizing workflow interruptions.

Prerequisites

Prior to using any TT Premium Order Type, your administrator must enable access by updating the settings at the user level in the User Account Permissions settings or at the account level using the Account Restrictions settings in Setup.

Available TT Premium Order Types

The following table list all order types available on the TT platform. However, the User Account Permissions in TT User Setup determines the actual order types shown in order entry widgets.

TT Order Type Description
TT Brisk Attempts to fill the parent order closer to when the order enters the market based on the order's Start Time.
TT Close Attempts to fill the order closer to the order's end time price.
TT POV Tracks and reacts to real-time market volumes to target a user-defined participation rate.
TT Prowler Behaves as an enhanced Iceberg order type that allows the user to customize values such as the minimum and maximum amounts to show in the market.
TT Scale POV Tracks and reacts to real-time market volumes to target a user-defined dynamically adjusting participation rate.
TT TWAP+ Executes a desired order quantity at consistently across the order's time horizon.
TT VWAP+ Uses historical intraday volume patterns to create a trade schedule that minimizes slippage versus the forecast.

TT Premium Order Type order lifecycle

The basic lifecycle for a TT Premium Order Type order is as follows:

  1. When creating an order, a TT Premium Order Type is selected within an order-entry widget and its parameter values are specified in the order type fly-out.
  2. A TT Premium Order Type order is submitted from the TT platform.
  3. A synthetic parent order is created for the TT Premium Order Type on an Algo Server co-located with the exchange.
  4. The synthetic parent order submits child orders to the market as dictated by the specific TT Premium Order Type.

    In the Order Book, the parent synthetic order is listed, followed by each of the child orders it submitted.
  5. As fills for the child orders are received, the parent order updates its working and filled quantities.
  6. It also sends the fill acknowledgments back to TT to order entry and order management widgets, such as MD Trader and Audit Trail. Note: When filled, a synthetic parent fill is reported for every native child order fill.
  7. When all of the child orders have finished working, the parent TT Premium Order Type order is fully-filled and is removed from the Algo Server.

Accessing TT Premium Order Types

You can access TT Premium Order Types in two ways: you can select a TT Premium Order Type from the Order Type drop-down in the MD Trader or Order Ticket widgets.

Configuring TT Premium Order Type orders

Each TT Premium Order Type displays a fly-out with its associated parameters when selected as the order type. You can enter the desired parameter values as well as save them as re-usable templates.

When using the Order Ticket, the parameters are displayed in an embedded panel. Based on the TT Premium Order type.

Placing a TT Premium Order Type order

To enter a TT Premium Order Type order:

  1. In the MD Trader® or Order Ticket widget, choose the contract to trade.
  2. Enter the desired order quantity and price for the order.
  3. Select the desired TT Premium Order Type from the order type drop-down.
  4. Specify the desired parent order parameters.
  5. Click OK to close the parameters dialog.
  6. Click Buy or Sell to submit the order.

    The parent order is added to the widget.