What Happens If a Liquidity Source Disconnects Mid-Session?

The functioning traditional financial marketplace is constantly reliant on the strong and stable connections between brokers, liquidity sources and trading platforms. Prices and orders are continually flowing, thus keeping these connections stable for all relevant links during a trading session is vital. Yet, due to occasional issues with the supply of liquidity, some disruption may happen.
In response to these temporary disconnections from operating networks, brokerage systems will automatically provide a rapid response that enables ongoing execution continuity. Once a disconnection has been detected by monitoring tools through real-time monitoring of the operations of every liquidity source, if any operating network is disconnected, the process of utilizing predetermined contingency plans can begin. The use of a backup routing system is an example of a contingency plan that can be utilized in the case of a disconnection.
While brokers typically maintain several liquidity sources, it is possible for trading to continue with minimal interruption to the execution of the trades until the temporary disconnection is resolved. Any change in the ongoing trading process will be recorded on all internal trading systems to ensure they are providing consistent market data for pricing, execution quality and order flow.
Furthermore, while the necessary resources and time that are employed by technical teams to analyze the situation will result in restoring the original operational connection to the relevant liquidity source once the underlying cause of the disconnection has been resolved, traders will normally not be able to identify changes made to the overall execution of their trades.

