Empower Your Security Business with a Sales Order Management System for Security

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welcome to video for this video is order management and execution in this video we will cover how the order is created in the system how the order is routed between different systems what is order enrichment and how the order is executed apart from that we will also discuss different trading types and there are the two different types of trader we will also discuss the same in this slide we will cover how orders are received from trains how the orders are created in the systems order in Richmond then order routing and how the orders are executed now climb things order via either fixed message or kind can all the trader or client an email the details of the order they want to get executed if client change order details to be executed to trader by email or phone then trader has to manually input such a kind of order in the system however if client is sending of order in a fixed message fixed message is nothing but our standardized message which is a financial information exchange message if the order is received by a fixed message then the system will automatically create the order using the details provided by client in the fixed message and the order is created in the system then there are certain rules which will check the order for details and will update the order with some specific information so it may update some specific client specific information or it can update some static and dynamic information so if we see that the client usually sends orders in the break code that is right as identification code but the system may be using some different identifier so system age update the order from the code to that particular security identifier apart from their client Commission and other trade related information which can be re glit from a regulatory perspective needs to be updated in that order so this is called order enrichment once compliance engine confirms that order is valid then order it can be sent for execution there can be multiple options available for execution such as order can be sent to a particular exchange for execution or there are different venues on which execution can be available apart from that order can be crossed internally with some other clients order or order can be sent into a dog a dog pool is nothing but a system where all the client orders get inside and if there is matching order then it gets executed with other client side's order as the audit sent for execution once the order starts getting executed it can get executed in smaller shapes or infiltrated with these shapes in which the order is getting executed are called fills these fills all the information about these films or executions is then sent back to the client so it can be saved by a fixed message again or to end of the reports so this completes our order rounding and execution before the order can be sent for execution there will be a compliance union which always keeps on running in the background which checks that particular order if it complies with various regulations or various compliance checks already existing in the system it can check for the price of the order or the size of the order we can also do some regulatory checks and also see if the order is legally compliant so it can check whether the client is allowed to trade in the particular market or some particular security it can also check whether if the client is trying to trade in some restricted securities then they can be set check as they're now coming to training types depending on how an order propagates inside the system or what is done with an order order can be segregated into two types one is a high-touch trading and other is a lotus training now when a client order is manually inserted into the system or received by a fixed message but sent to exchange or other venues for execution by the trader of that broker then that is a height restraining broker trader is responsible to provide the best execution for claim in high-touch trading and there are chances latency or delay in order execution because it is a manual process and manually traders have to intervene and check orders and send send those for executions because of Mendel intervention these kind of orders are more prone to high errors now coming to Lotus trading these days Lotus trading is the key word or the buzzword in market clients use only brokers IT infrastructure for execution this kind of orders are also known as DMA orders or direct market access orders their client is simply using Google's infrastructure because Google usually will be a market participant on that exchange my client can't be exchanged execution is done with minimal intervention from the broker or the Blucas traders so the benefit of this is that there is a low latency and delay because of no manual intervention in values in Lotus trainings and if eligible opposite side orders are available execution will be very quick also since there is no manual intervention they are very less chances of error so clients basically use Lotus trading where they have already the strategies on how they want to execute their orders so they do not rely on local traders and rather use only grow cross-eyed infrastructure there are two ways how a broker can internally execute a client's order one is dark bull trading and other is internal cross that pool is brokers on execution system where a trader will send the client order into that system and if there is any other clients opposite order with matching details matching price existing in that system both the clients order will get executed for whatever is the maximum eligible quantity earliest dark pool was hidden from exchanges but now regulatory has made it mentioned that it is mandatory to report any order which is executed in the dark pool the difference between a dark pool and our internal cross is that in internal cross a trader will have visibility of the opposite class non-resident they will execute both the orders together with the visibility and report it over to exchange where as in doc pol the trader simply sends the order to that up and will not be able to see that there is existing apposite side order already there in the dark pole or not so if there is an existing order in the dark pool which is opposite to the order which trader has linked the execution will happen otherwise order will remain live and output and it may happen that children we cancel it from the dark pool if the execution is not happening and send it over to exchange nowadays execution is not simple and just receiving the client's order and sending it over to exchange with other venues for execution nowadays there is algorithms which have come in picture where the algorithms try to target some specific price or some specific time depending on whatever the algorithm is made for so when a client order is sent to an algo engine the order execution is as per the specific item mentioned in that particular order for example order algorithm has execution time mention else from market up until 3 p.m. then algorithm engine will send the order and market open and try to get the executions on exchange from market open time till 3 p.m. if till 3 p.m. order is only partially executed then the engine will send a cancellation to cancel the remaining and executed quantity on exchange similar way there can be different algorithms where order can target one specific price only or look into some specific price range coming two types of traders there are two types of traders one trader is who is facing the client and other trader is usually who is facing the exchange or the execution side the trader who is facing the plant is conscious trader or sales desk sales desk responsibility is to take orders from the client for buy and sell on behalf of client advise the client on their investment decisions for any by ourselves I carry and send clients orders to the daling desk or dealing traders for order execution so sales trader will receive the orders from the clients validate those orders and send it over to the dealing desk also they can advise on the research that the client can buy these particular securities or not or in future if they want to buy something dealing trader is actually responsible for the execution of the client orders which he receives from the sales desk on so since trader dealing desk is responsible to route the client order to different venues or exchange in single shape or split shape or can get that execution in the dark pool or can get the outlines or the internal across so it all depends on dealing desk where they see where they can provide clients with the best execution price dealing this can also try to execute claims order internally in the dark pool or with other clients order so that is all dealing this responsibility also they need to make sure that they are providing client the best available execution price we have come to the end of this video so if you liked our video don't forget to share you 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