An Execution management system, or EMS, is an application utilized by
traders designed to display
market data
''For market data as used in marketing, see marketing information system''
In finance, market data is price and other related data for a financial instrument reported by a trading venue such as a stock exchange. Market data allows traders ...
and provide seamless and fast access to trading destinations for the purpose of transacting orders. This application contains broker provided and independent
algorithm
In mathematics and computer science, an algorithm () is a finite sequence of rigorous instructions, typically used to solve a class of specific problems or to perform a computation. Algorithms are used as specifications for performing ...
s such as
TWAP and
VWAP, global market data and technology that is able to help predict certain market conditions.
[Daniel Safarik]
Execution Management Systems: From the Street and on the Block
''financetech.com'', September , 2006 One of the important features of EMS is the capacity to manage orders across multiple trading destinations such as
stock exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
s,
stock brokerage firms,
crossing network
A crossing network is an alternative trading system (ATS) that matches buy and sell orders electronically for execution without first routing the order to an exchange or other displayed market, such as an electronic communication network (ECN), wh ...
s and
electronic communication network
An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges. An ECN is generally an electronic system that widely disseminates orders e ...
s.
In addition to commercial vendors, a few
open-source
Open source is source code that is made freely available for possible modification and redistribution. Products include permission to use the source code, design documents, or content of the product. The open-source model is a decentralized sof ...
projects can be counted in as EMS, although their breadth varies.
See also
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Algorithmic trading
Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of ...
*
Dark liquidity
In finance, a dark pool (also black pool) is a private forum ( alternative trading system or ATS) for trading securities, derivatives, and other financial instruments.[Electronic trading platform
In finance, an electronic trading platform also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products ...](_bl ...<br></span></div>
*<div class=)
*
High-frequency trading
High-frequency trading (HFT) is a type of algorithmic financial trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no ...
*
Order management system An order management system, or OMS, is a computer software system used in a number of industries for order entry and processing.
Electronic commerce and catalogers
Orders can be received from businesses, consumers, or a mix of both, depending on th ...
*
Single-dealer platform
A single-dealer platform (SDP) is software used by an investment bank dealing in the capital markets to deliver trading and associated services via the web. The function of an SDP is to integrate pricing, liquidity, and information from multiple so ...
References
{{reflist
External links
Directory of EMS vendorsEMS Providers Jump Onto The Cloud
Electronic trading systems