Execution Engine

The Execution Engine is a component of the Theo Network node responsible for all execution. Specifically, it is responsible for executing trades when prompted by the Policy Engine and rebalancing collateral across trading venues when prompted by the Risk Engine.

Executing Trades

Strategy operators prompt when and how trades should be executed by means of a dedicated API. It is the responsibility of the Policy Engine to ensure the trade follows predefined strategy policies before passing the trade to the Execution Engine.

Upon being prompted to make a trade, the Execution Engine automatically determines a limit price or slippage tolerance before sending the trade to the appropriate venue.

Rebalancing Collateral

The Risk Engine prompts the Execution Engine to rebalance collateral between trading venues as risk parameters fluctuate.

Upon being prompted to do so, the Execution Engine finds the optimal route before bridging collateral.