Sinara have published an article on Infinite Intelligence about the critical role of advanced order management systems in enhancing broker efficiency and reducing risks.
Read the whole article below:
Transforming order workflow in the modern brokerage
As brokers increasingly turn to new digital solutions to streamline their operations and improve efficiency, the importance of an effective order management system (OMS) cannot be overstated. The traditional methods of relying on a mixture of spreadsheets, paper-based processes, and disparate systems are becoming less and less sustainable as the demands on broker firms increase. In particular, commodities and metals markets—where Sinara has been at the forefront of helping broker firms with their digital transformation journeys—have seen significant interest in brokers looking to overhaul their aging order management workflows.
At heart, an OMS is a software solution that helps trading firms manage their order flow, from the initial client request to the final execution. As brokers look to upgrade their order processing operations, boost productivity, and reduce risk, it is crucial they carefully consider their needs and ensure any new OMS brings real advantages and allows them to better deploy the time of their highly skilled staff.
One important feature of any good OMS is multi-asset and multi-venue support, allowing brokers to trade on multiple exchanges and platforms without having to switch between different systems. This not only increases efficiency, but also opens up new opportunities for arbitrage and maximising profits. Support for real-time market data integration is another essential element of an effective modern OMS. With fast-moving markets and the need to make quick, informed decisions, brokers need access to the latest data and analytics in order to make the most successful trades.
Brokers large and small also need to be able to manage their orders and positions around the clock, and the OMS must be able to support this effectively. With the ability to access and manage orders from anywhere, at any time, brokers can provide a better service to their clients and remain competitive. This is especially important for firms with offices in different countries, who want to be able to work more efficiently and easily hand off work between traders in different time zones.
By providing broker clients with the ability to transmit orders or quote requests digitally, a flexible OMS can also effectively act as a trading platform, allowing a full audit trail to be maintained of the end-to-end trading interaction. Another key aspect of a good ‘global’ OMS is its ability to easily switch between multiple user languages in a friendly, uncluttered user interface, allowing brokers to expand their operations and better serve new markets. This also ensures that any new system can be easily adopted by trading and operational staff in different countries.
This leads onto thinking about security, another crucial consideration when it comes to OMS. With sensitive financial data at stake, brokers must ensure their systems are secure and compliant with relevant regulations. With many traders nowadays working at least part of the time from home, it is essential firms have a system in place to protect confidential information and ensure secure transactions.
In terms of technology, a key trend emerging across the markets is the continued move towards cloud-based systems, especially for new initiatives. Cloud-based systems provide brokers with the flexibility to access their OMS from anywhere, at any time, while also reducing the cost and complexity of maintaining the IT infrastructure required to support a traditional OMS. Done right, they also help deliver huge scalability potential, accommodating increasing trade volumes and expanding market offerings.
Finally, it is crucial for any new OMS to offer a very high degree of customisation and the ability to integrate with a broker’s existing back-office systems and other workflows, allowing for smooth and efficient operations. This is particularly important for commodities brokers, who often have very specific needs when it comes to order management and other aspects of the trade lifecycle. Sinara’s SinaraTLC trade lifecycle component suite is one example of a comprehensive technology solution that can help brokers achieve this transition, providing a foundation for highly tailored order management solutions accessible to both traders and clients around the world. So whether it be metals or other commodities, or other asset classes, it is clear that brokers who invest in effective, well-integrated OMS technology will be well-positioned to retain customers and take advantage of new market opportunities.
