Creating a Direct Routed Order in TWS Mosaic

Study Notes:

The Interactive Brokers Trader Workstation (or TWS) Mosaic allows an IBKR Pro client to use IBKR’s SmartRouting or route an order directly to a specific exchange. This video explains how the investor can select the individual exchange to route an order to.

Why might an investor direct route an order?

While we should note that SmartRouting an order is likely to provide an investor with the best overall fill at the lowest overall execution cost, there are a couple of reasons why an investor might wish to direct route an order:

1. Investor preference
2. Liquidity or rebates

Using the TWS Mosaic Order Entry panel, once a symbol has been entered an investor can route an order directly to an exchange by using the Advanced window area.

Are all order types supported by all exchanges for all products?

Please note certain order types and algorithms may not be supported by every exchange. For more information on order types and exchanges they are supported on, please visit the Interactive Brokers’ website.

How to direct route an order in TWS Mosaic?

In the Order Entry panel, the investor opens the Advanced window by clicking on the plus sign on the Advanced button. Locate the Destination button in the top left corner. To set the exchange the order will be routed to, the investor should click on the white arrow on the Destination tab and click on the plus sign next to Directed to expand the choices. The list displays all exchanges available where the order can be submitted to for that instrument.

Next the investor chooses the exchange that they want to route the order to by clicking on it. The Destination button will now show the chosen exchange.

To close the Advanced window the investor clicks on the red “x” next to the Advanced button. When they are ready to send the order the investor clicks on the Submit button in the lower right-hand corner of the Order Entry panel and an Order Confirmation Window will appear with a summary of the order showing the exchange chosen next to Routing. After the investor reviews the order, they can click on Transmit to send the order.

In the Activity panel in the bottom left-hand side, the Destination column shows the exchange the order has been routed to.

Resources

IBKR Order Types

IBKR SmartRouting