RBC Capital Markets Receives Canadian Patent Approval for THOR Smart Order Router Technology


RBC – TORONTO – THOR® technology, a smart order router that significantly enhances investors’ ability to access liquidity in the market and receive the best prices and execution, has been granted a patent in Canada by the Canadian Intellectual Property Office. THOR® was developed in-house by RBC Capital Markets, the corporate and investment banking division of Royal Bank of Canada.

“THOR® is a prime example of how RBC is developing and integrating innovative solutions and technological advancements to meet the needs of our clients,” said Greg Mills, head of global equities at RBC Capital Markets. “In 2010, RBC was the first investment bank to introduce proprietary smart order router technology to combat latency arbitrage, a predatory high frequency trading strategy which erodes market integrity. Since then, THOR® has played an important role in leveling the playing field for both retail and institutional investors.”

THOR® technology enables synchronized routing of split order segments to multiple exchanges without loss of fill rates, limiting the advantage that latency arbitrage users have over other market participants. Unlike conventional order routing technologies that send orders to multiple trading venues simultaneously and rely on speed of transmission, RBC’s THOR® routing logic determines when orders should be sent to multiple exchanges so that they arrive simultaneously.

Through the use of THOR® and the underlying RBC patented technology, virtually all investor orders are filled on a regular basis.

“Innovation is central to how we adapt as a business to provide our clients with an exceptional experience,” Mills added. “RBC continues to take an active role in the development of further electronic trading innovations to ensure fair and efficient markets for all participants.”

RBC’s THOR® technology was launched in the U.S. in 2010 and soon after that in Canada and Europe. Aspects of the THOR® system have been granted patent protection until as long as 2029 in the U.S., Canada, Australia, China, Japan, Mexico, Singapore, and South Africa, with patent protection pending in other jurisdictions, including: Europe, South Korea, India, and Brazil.

RBC continues to protect its investments in innovation and technology through the development and maintenance of its patent and trademark portfolio.

Innovation at RBC
Innovation is core to our thinking at RBC. We’re not only building a digitally-enabled relationship bank, we’re changing how we work, collaborating with a diverse set of partners to explore new technology, and we’re investing in the wider Canadian digital ecosystem to drive the future prosperity and economic success of the country. Here are a few of the ways we’re innovating:

  • We launched an industry-leading mobile wallet in 2015, and introduced our new mobile banking app in 2016. In RBC Personal & Commercial Banking, 60 per cent of all financial transactions, excluding cash withdrawals, are through digital and mobile channels.
  • In September 2016, RBC became a member of the Global Payments Steering Group, the first interbank group for global payments based on blockchain technology.
  • In 2015, RBC introduced the first fully cloud-based payment solution by a North American financial institution, using Host Card Emulation.
  • We have built innovation labs in Toronto, London, Luxembourg, New York, Orlando, and San Francisco.
  • We’re working with leading universities to partner with the best, brightest and boldest minds that we can find. This includes building a $3 million start-up accelerator at the University of Toronto for student and graduate entrepreneurs to develop commercial ideas.

About RBC Capital Markets

Related articles

  1. Latest News

    AI Births SOR 3.0

    Adaptability becomes the hallmark of the latest generation of routers.

  2. Northern Trust to Add Algo Execution to CompleteFX

    Aussie broker selects FlexOMS for order routing & algo trading.

  3. Contributors Corner

    The Blind Men and the Elephant

    Understanding a broker's routing process can shed light on institutional trading.