What is the primary function of Smart Order Routing (SOR)?

The primary function of Smart Order Routing (SOR) is to automate order handling across different venues. SOR systems are designed to examine multiple trading venues, such as exchanges and dark pools, to determine the best possible execution price for an order. By automatically routing orders to the venue that offers the most favorable conditions—such as the best price or the lowest latency for execution—SOR optimizes the trading process. It enables traders to respond rapidly to market conditions and improves the efficiency of order execution, ultimately aiming to enhance trading performance and reduce costs.

Other functions mentioned, such as managing marketing campaigns, analyzing trading algorithms, or facilitating manual order entry, do not align with the core capabilities of SOR technology, which is specifically focused on the seamless and efficient execution of trade orders.