Automated Securities Order Execution Filtering
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Solution Overview
Problem
Existing equities trading systems require manual review of orders, leading to prolonged execution times, which is undesirable in rapidly moving markets where quick execution is critical for obtaining the best possible trade price.
Innovation Solution
An automated securities trade execution system that allows traders to set pre-defined rules for orders, enabling automatic processing if criteria are met, thereby reducing the need for manual intervention and shortening execution time.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual review of every order is performed, then order placement accuracy is maintained, but execution time increases
Solution Approach 1:
The order processing system is segmented into automated filtering components that handle routine orders and manual review components that handle complex orders. The filtering means automatically evaluates orders against predefined criteria, routing simple orders for automatic execution while flagging complex orders for manual trader review, thus reducing overall execution time while maintaining accuracy for orders requiring human judgment
Solution Approach 2:
The system enables self-service automated order processing where the filtering means autonomously evaluates orders, applies predefined criteria, and executes trades without manual intervention for qualifying orders. This self-service mechanism handles routine orders automatically, freeing traders to focus only on orders requiring manual assessment, thereby significantly reducing execution time while preserving accuracy through systematic filtering
2Loss of time
If automated processing is implemented, then execution time is reduced, but system complexity increases
Solution Approach 1:
The system employs preliminary action by establishing predefined filtering criteria and rules before order processing begins. The filtering means is pre-configured with evaluation parameters, routing logic, and execution protocols, allowing orders to be automatically processed through established pathways without requiring complex real-time decision-making infrastructure, thus reducing execution time while managing system complexity through预先 established protocols
Solution Approach 2:
The filtering means serves as an intermediary component between order entry and execution. It mediates the processing flow by automatically evaluating orders against predefined criteria and routing them to appropriate destinations (automatic execution or manual review). This intermediary layer simplifies the overall system architecture by handling routine processing automatically while maintaining clear pathways for manual intervention when needed
3Reliability
If all orders are manually processed, then compliance and accuracy are ensured, but productivity decreases
Solution Approach 1:
The processing workflow is segmented into automated filtering and manual review stages. The filtering means handles routine compliance checks and order evaluations automatically, ensuring consistent application of predefined criteria. Only orders that fail automated filtering or require complex judgment are routed to manual processing, thereby maintaining compliance and accuracy through systematic filtering while significantly increasing overall processing throughput
Solution Approach 2:
The system incorporates feedback mechanisms where the filtering means continuously evaluates orders against predefined criteria and adjusts routing decisions accordingly. Automated filtering provides feedback on order eligibility, and manual reviewers provide feedback on edge cases that inform refinements to filtering rules. This feedback loop ensures compliance and accuracy are maintained while enabling high-volume automated processing of routine orders
Data Source
AI summary
An automated securities order execution system includes order entering means for a client to enter an order and at least one filtering means for determining whether the order can be automatically executed. Routing means are used for routing the order to a destination based upon the determination made by each of the filtering means. After the order has been properly routed, the order is executed and the result of the order execution is reported to the client.