The search for liquidity has overtaken the low latency arms race as a goal of its own. Survival is about more than simply managing risk and cost; it now requires reaching globally distributed trading venues on-demand, accessing liquidity where it is growing and creating liquidity where opportunities await. But high speed systems are still “table stakes” across all forms of electronic trading. The explosive growth of these systems has led to the rapid addition of complexity and duplication, driving up cost and preventing an accurate view of risk across portfolios and asset classes. Efficient, cost-effective execution infrastructure should instead remove redundancies, standardise risk controls, and simplify access to the markets – not complicate it.
How it Fits in the Direct Market Access Platform
The Order Execution Gateway manages trade order flow generated by screen-based and algorithmic trading systems connected to the normalised API or FIX interface. It also applies embedded pre-trade risk controls to that order flow on the way to trading venues.
The Object Trading Order Execution Gateway (FrontTrade) provides fast, scalable and reliable order management, supporting all forms of electronic trading systems from screen-based through black box (via API) trading.
The gateway allows clients to connect via a single normalised API or FIX interface and trade on more than 60 global equity, derivative and FX exchanges. You write once to our API and send order flow in the same format to any connected exchange.
The system is available as a Software Only deployment, or as part of a Fully Managed DMA Service deployment. See our deployment options for more information.
Capabilities the Order Execution Gateway Provides
- Write to our API once – and execute orders generated by any form of electronic trading system from screen-based through black box (via API).
- Trade on all major derivatives and cash equity markets over the same normalised interface.
- No need for changes to a client system when exchanges update their APIs.
- Design, test, execute, and quickly port trading strategies without writing to additional exchange interfaces.
- Enable screen-based and algorithmic trading or analytics requirements.
- Execute orders fast
- Benefits to the Sell-Side: provide fast, scalable and reliable order management to clients.
- Benefits to the Buy-Side: get fast, scalable and reliable order management to:
- Get to the book first and manage slippage cost.
- Capture opportunities first and manage exposure more effectively when market making.
- Manage the full order lifecycle between front end trading screens and an exchange in a simple, consistent manner.
- Enable sophisticated trading strategies with synthetic order management.
- Co-locate at the execution venue without having to buy, provision, and maintain infrastructure. You write to our API or FIX interface once, and we do all the rest. (Available when deployed as the Fully Managed DMA Service).
- De-couple the trading screens from exchange connectivity to reduce cost and complexity.
- Benefits to the Sell-Side:
- Manage incoming FIX or proprietary orders from any external OMS, EMS or PMS without redundant market access infrastructure.
- Allow buy-side clients to use any trading screen they want. Object Trading is vendor-neutral and is already integrated with most of the market leaders. Integrating new trading screens is simple, using our normalised API. Learn more about our Screen Vendor Partners.
- Benefits to the Buy-Side:
- Use whatever trading screen vendor or internally built screen your traders prefer. Object Trading partners with well-known specialised screen vendors, integrating their order generation and risk management systems to our APIs.
- Object Trading is vendor-neutral, with standard interfaces that can ease integration with any screen vendor, news service, data feed or risk management system.
- Benefits to the Sell-Side:
- Reduce time-to-market and total cost of ownership (TCO) associated with obtaining, maintaining and (for sell sides – providing) order execution gateway infrastructure.
- Optimise the buy-side/sell-side relationship to increase flexibility and reduce risk.
- The buy-side client can manage risk while still providing the broker direct and exclusive ability to set and manage their risk constraints with the embedded Pre-trade Risk Controls.
- Apply pre-trade risk controls consistently regardless of venue, minimising re-work for different geographical locations. See Pre-Trade Risk Controls for more information on how to create one place to manage ALL execution risk.
- Sell-Sides gain flexibility by being able to focus on their core service offerings and bring on new clients without taking on infrastructure costs. They also gain access to a community of buy-side order flow.
- Buy-Sides gain flexibility to choose their broker relationships based on business needs. They can avoid broker lock-in, using multiple brokers as needed without taking on an additional infrastructure burden. Buy-sides also avoid paying broker mark-ups for market access and enjoy increased choice in trading screens systems. Choose your market access independent of your prime broker relationships, while finding a broker ready to take your business and that meets your account size, leverage, geographical and asset class needs. Learn more about our Conformed Broker Programme.
What About My Trading Screens?
Instead of building and maintaining our own screens, Object Trading partners with well-known specialised screen vendors, integrating their order generation and risk management systems to our APIs. Object Trading is vendor-neutral, with standard interfaces that can ease integration with any screen vendor, news service, data feed or risk management system. No matter which deployment model you choose, you can use any trading screen provider, including screens built in-house. Many trading platforms are already integrated. Click here to learn more about our Screen Vendor Technology Partners.
- Normalised interface for order management across multiple markets via FIX or FrontRunnerAPI.
- Supports order flow from multiple sources to multiple execution venues via multiple brokers.
- Separating the client system interface from exchange connectivity means the client system does not need to change when exchanges update their APIs.
- Synthetic order engine delivers equivalent functionality for specific order types supported by some markets but not others, allowing the client to trade transparently across disparate exchanges.
- Scalable system enables single users, multiple users or entire trading desks and enterprises.
- High availability configurations supporting persistent messaging.
- Quickly move trading strategies into new markets without writing to a new interface.
- Powerful pre- and post-trade analytics.
- Visibility to all the trade flow passing through the Order Execution Gateway with controls to cancel individual, multiple or all working orders as well as the ability to block all further order submissions.
- Highly configurable system for controlling which users can enter orders and how they can be monitored or controlled by other users.
- Embedded pre-trade risk controls ensure that orders adhere to the risk constraints agreed between client and broker/clearer.
- Manage all execution risk in one place, regardless of originating source or destination.
- Aggregated view of positions and exposures across markets and multiple clearing brokers.
The system is available as:
- a Software Only deployment, or
- as part of a Fully Managed DMA Service deployment – you write to our API or FIX interface once, and we do all the rest.
See our deployment options for more information.
Services Included in the Fully Managed Deployment Options
Write to our API once, and we do the rest.
- Client Services include onboarding, a sandpit environment for testing, the ability to connect any trading system, and the ability to choose from 60+ exchanges and work with a wide range of conformed brokers. Read more about our Client Services.
- Infrastructure Services include hosting, cross connects, hardware, network and bandwidth management, monitoring, and updating to conform to exchange upgrades. Read more about our Infrastructure Services.
Learn more about the Direct Market Access Platform
Get information about our Pre-Trade Risk Controls and our Market Data Feed Handler
Check out our locations and connected markets
Read about our conformed brokers programme
Choose your deployment model
Email us or contact one of our local offices to get more information and learn how this system might work in your environment.
How decoupling market access from trading screens saves money
Why you should resist the temptation to buy everything from a single vendor
How buy-sides are dealing with sell-side retrenchment
Managing Slippage, Liquidity Fragmentation and Volatility