What Is an Institutional Trading Platform?
An institutional trading platform is the software or electronic marketplace that professional investors, such as pension funds, asset managers, hedge funds, insurers and banks, use to trade. It helps them place very large orders without moving the price against themselves, trade for many accounts at once, follow strict rules and keep an exact record of […]
What Is AML Transaction Monitoring?
AML transaction monitoring is the ongoing review of customers’ transactions to spot activity that may be linked to money laundering or other financial crime. Banks, payment companies, brokers, crypto exchanges and other financial firms use it to compare what a customer actually does with what they would expect from that customer. Most of the time […]
Order Management System (OMS): How It Works in Trading
An order management system (OMS) is software that keeps track of trading orders from the moment someone decides to trade until the result reaches the accounts. It records what was requested, checks whether the order is allowed, sends it for execution and follows everything that happens to it afterward. Every order raises three questions, and […]
What Are Junk Bonds? How They Work and Key Risks
Junk bonds are bonds rated below investment grade, indicating higher credit risk. Also called high-yield or speculative-grade bonds, they generally offer higher yields than comparable investment-grade debt to compensate investors for a greater risk of missed payments or default. The term describes credit quality. It does not mean the bond is worthless, that the issuer […]
What Is an Execution Management System (EMS) and How Does It Work?
At any moment, the trader should know what was requested, what is working, what has filled, what changed and what decision remains. If the system can show that clearly, keep the audit trail and measure the outcome against the right benchmark, it is doing the job an EMS exists for.
What Is Smart Order Routing? How SOR Finds the Best Execution Venue
The best ask is not always the cheapest place to buy. Suppose you want 10,000 shares. Venue B shows the lowest ask at $25.09, but only for 1,000 shares. Venue A has 2,000 at $25.10. Venue C can fill the remaining 7,000 at $25.11 and charges a lower fee. Sending the whole order to Venue […]