Michael Sprachman, VP of Brokerage Trading Platform, offered key insights on how it works and how the platform developed by Devexperts can help brokers differentiate themselves in such a competitive industry.
The webinar laid out the inner workings of fractional trading, from fractional vs notional quantities, fractional inventory management, and the fractional OMS (order management system).
The Devexperts trading platform supports a number of workflows for brokers to manage orders: Route as Received, Fractional rounding algorithm, and Pre-allocated Block Orders. All of this is thoroughly explained in the webinar that introduces the Devexperts white-label platform DXtrade XT. The video is now available on Youtube and can be found here.
Fractional OMS Routing options
Below is a more detailed description of the Fractional OMS Routing options made available by Devexperts.
Routed as Received – For executing destinations that support Fractional and Notional quantities, the OMS routes orders as received from the source, then reflects all executions and positions in fractional quantities.
Fractional Rounding Algorithm – For brokers that want to manage their own fractional trading or cannot route as received in these increments, the Fractional Rounding Algorithm provides the capability to take orders in fractional and notional quantities and route to the street in whole shares. The Algorithm rounds each quantity and after receiving an execution, fills to the client account for their order quantity and allocates the remainder to a broker inventory account which they can manage.
Pre-Allocated Block Orders – The platform supports pre-allocated Block orders with allocations in fractional/whole share quantities and notional amounts. Allocation messages are queued in the OMS while the Block order is routed to the market. Upon receipt of the block order execution, the post-trade allocations are initiated in the OMS distributing securities to the underlying accounts.
When combined with the Fractional OMS, our Order Routing Wheel provides brokers wilt full control over their order flow. The Routing Wheel allows brokers to establish routing profiles on the asset class level based on destination percentage preference with automatic re-route to the next destination if an endpoint in the wheel rejects an order. Routing percentages can be updated and destinations enabled/disabled in real-time on the profile or asset level.
The contents of the webinar are highly suited not only for brokers and entrepreneurs within the Forex/CFD industry but also for those who are thinking of launching a traditional stock brokerage. Now it is possible for brokers operating in any part of the world to provide access to the US-listed stocks for their local investors.
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