Why the Right Trading Network Makes Order Management Work at Optimal Speed
01.25.23 | Scott Scherr, Managing Director
Picture your favorite coach. All of the different personalities of each player, the different talents of each player, and even the different ways to connect to each player — they have to deal with it all. The role of a coach is to bring everyone together who might otherwise be separate or not even talk to each other, and get them all to work consistently and create synergy in order to win.
Now, take away the whistle and clipboard, make the coach digital, put them in the wealth management world, and what you have is a trading network. But what exactly is a trading network made up of? Does it matter which trading network your firm uses? Are some trading networks better than others?
Well, coach, we’re ready to dive in.
What is a Trading Network?
A trading network connects FinTech providers, custodians, brokers, asset managers, financial advisors, and more so trade orders can be passed between all the relevant parties who need to be involved in a trading workflow.
Trading venues use a common communication protocol “FIX” Financial information Exchange. https://www.fixtrading.org The FIX protocol allows normalized messages to be communicated between financial investment firms and trade execution venues.
FIX has become the language of the global financial markets used extensively by buy and sell-side firms, trading platforms and even regulators to communicate trade information. This non-proprietary, free and open standard is constantly being developed to support evolving business and regulatory needs, and is used by thousands of firms every day to complete millions of transactions.
So instead of having to connect to and maintain connectivity to all of your tech partners as well as custodians and brokers, you’re able to route orders to the correct brokers and custodians in a simplified, streamlined process.
Why Your Trading Network Matters
The definition of a trading network might sound simple enough in theory, but it does actually make a difference in which one your firm uses. Not all trading networks offer all of the same setup and features.
Your investment management firm has unique needs, of course. But also be on the lookout for these two main issues that you shouldn’t compromise on:
- Security: Look for a trading network that unifies all trading workflows into a single interface. When you don’t need multiple software systems to create trades and then route them to your custodians, you are able to reduce complexity and improve security.
- Customization: Every fintech solution out there offers integrations, but those only get you so far. You still have to manage the connections yourself, and you are limited by each tech partner’s rules. An end-to-end trading network puts the power back in your hands. You get to dictate the terms of your trade order management from beginning to end.
How the Flyer Trading Network Improves Order Management
The Flyer Trading Network (FTN) leverages the latest cloud technologies and computer power to unify trading workflows into a single interface.
The top features of FTN include:
- Workflows: As an advanced order routing and allocation network that standardizes connectivity and workflows, FTN makes it effortless to trade with your custodians and brokers. FTN has an extensive and secure API that eliminates the hassle of an integration or the need for additional infrastructure, software, or specialized resources while extending your reach and capabilities.
- Customizable Management: Whether you need to masterfully build and tailor portfolios with a robust suite of trade tools, including a full rebalancer, or trade specific securities one at a time, FTN handles it all.
- Connected: Because FTN has one of the most extensive networks of custodians and brokers in the industry, you can manage the entire trade flow through Flyer — from trade creation to working the trade after you’ve sent it to your broker to get the price and allocation fulfillment you want for all your clients.
Just like coaches, some trading networks stand out more than others. FTN boasts 500,000 average daily trades, 2 million managed investor accounts, and 2.6 billion equity shares traded. Experience counts, and FTN can deliver the reliability and features your firm needs to enjoy a worry-free trade order management process.
Want to learn more about how Flyer and FTN can help simplify and streamline even the most complex trading operations?
Get in touch with us.