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The Order Management System is a collection of components offering real-time trade order capture and validation, pre-trade compliance, trade routing, and execution handling for equity, option, and mutual fund order flow. Four components comprise the Order Management System:
The Order Manager serves as the central point of contact for all order processing, performing the following:
Within the BPC Suite, trade orders are modeled such that each phase of the trade order lifecycle is accurately represented.
User identifier and millisecond timestamps are recorded permanently for each state transition for unimpeachable non-repudiation and OATS compliance.
The Compliance Engine is a fully configurable high-speed rules engine capable of rapidly applying hundreds of tests to individual orders to determine validity and compliance with regulatory and risk management guidelines. All newly entered orders are submitted for compliance checks before further processing. The Compliance Engine is able to implement sufficient rules to ensure order parameters are valid, margin requirements are met, per account restrictions are not violated, firm-wide risk thresholds are not exceeded, even that suitability guidelines are respected. Such automation is indispensable when handling high-volumes of order flow.
A configurable series of rules is applied to inspect various parameters of
the order itself, the referenced security, the entering user, the account in
question, and properties visible at the account's position in the hierarchy.
A detailed heuristic permits the engine to run only as many tests are
necessary to verify each order. The rule set is configurable and may include
any number of rules performing tests on any of the parameters of the actors
involved. Further, the engine has access to full portfolio information and
live pricing information to analyze the order in the context of its account
and the general market. There are times when human intervention is desirable to verify compliance or make risk management decisions concerning orders that while valid, exceed certain limits or meet various criteria identifying potential risks. The Review & Release Queue serves as an intermediate step in order processing where this intervention may take place. It permits firms to define specific criteria used to determine when orders are routed for review. Routing criteria may be tailored precisely to each firms business requirements, risk management policies, and regulatory environment.
Once an order has been routed for review, an authorized advisor, trader, or compliance officer can review order details and choose either to release the order for further processing or to reject it (entering a reason for rejection if desired).
If released for further processing, the order is routed on to the appropriate point-of-execution by the Order Manager.
If rejected, notification is immediately posted to the message boards of all users registered as interested parties for the account in question.
The OMS Interface centralizes the maintenance of multiple real-time interfaces to various points-of-execution and manages all message traffic across those interfaces. Designed for flexibility and full extensibility, the OMS Interface component permits the exchange of order and execution messages with virtually any source of liquidity and can integrate with fully disclosed or omnibus clearing systems.
Any enterprise wishing to simplify development, maintenance, and operation
of multiple real-time trading interfaces may deploy the OMS Interface
independent of the rest of the Order Management System.
When taken as a whole, however, the Order Management System offers a robust trade order management system that can be rapidly configured or customized as needed to suit enterprise requirements.
When combined with the Portfolio Accounting Engine and other
BPC Components, it offers a proven pre-integrated platform for high-volume real-time investment services applications.
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