Trader Server for IM to OMS Trading Instruction Conversion
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Solution Overview
Problem
Current securities trading systems face inefficiencies and errors due to the need for manual re-keying of trading instructions from instant messaging (IM) into Order Management Systems (OMS), which increases costs and delays, and requires expensive FIX-based OMS systems for buy-side traders.
Innovation Solution
A system that allows direct electronic input of trading instructions from IM into a sell-side broker's OMS via a Trader Server, converting IM communications into FIX protocol-compatible messages, eliminating the need for manual re-keying and expensive OMS systems for buy-side traders.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual re-keying of trading instructions from IM into OMS is performed, then trading instructions can be processed by the OMS, but processing costs increase, delays occur, and errors are introduced
Solution Approach 1:
A Trader Server is introduced as an intermediary component between the IM communication system and the OMS. The Trader Server receives trading instructions via IM, converts them to FIX protocol format, and transmits them directly to the OMS, eliminating the need for manual re-keying and reducing processing time
Solution Approach 2:
The manual mechanical process of re-keying trading instructions is replaced with an automated electronic conversion system. The Trader Server automatically parses IM messages and generates corresponding FIX protocol messages, substituting human manual input with automated computer-based processing
2Ease of operation
If expensive FIX-based OMS systems are used for buy-side traders, then direct electronic communication with sell-side brokers is enabled, but system cost increases
Solution Approach 1:
Instead of requiring buy-side traders to install expensive FIX-based OMS systems, the patent creates a simplified copy of the essential functionality through the Trader Server. The Trader Server handles the complex FIX protocol conversion and communication, allowing buy-side traders to use simpler, less expensive IM clients while still achieving direct electronic instruction delivery
Solution Approach 2:
The Trader Server acts as a mediator that eliminates the need for buy-side traders to have complex FIX-based OMS systems. It handles the protocol conversion and communication complexity, allowing buy-side traders to use basic IM clients while still achieving direct electronic instruction delivery to the sell-side broker's OMS
Data Source
AI summary
A system allowing traders, etc. to use instant messaging (IM) (or other non-FIX based) communications to input trading instructions directly into a broker's Order Management System (OMS) for managing/executing trades. Accordingly, trading instructions may be provided electronically directly from a buy-side trader, and directly to a sell-side broker's/brokerage's OMS, without the need for the sell-side broker to manually re-key the order into the sell-side firm's OMS. Further, trading instructions are provided in electronic format directly to the broker's OMS without the need for the buy-side trader to have an expensive FIX based OMS or associated FIX connection, which is also expensive, thereby allowing relatively smaller investment houses/buy-side organizations to enjoy the benefits of electronic delivery of trading instructions directly to brokers' OMS.