Question

Write a short paragraph (2 to 3 sentences) with your reactions/thoughts to the following prompts:

Part 1: Technology priorities for investment banks and traders have been on front office technology, particularly order and execution management systems. Explain  

Part 2:  Customers can view the ECN order book (Central limit order book, or CLOB) via a terminal or the Internet. Explain

Part 3:  In algorithmic trading, computers directly interface with trading platforms, placing orders without immediate human intervention. Explain

Answer 1

In the technology priorities for invesment banks and traders have been on front office technology, perticulary order and exucation depends on Order management system and Execution management system. Order mangement system is a software application for facilitating and managing the order and trade flow between the (buy-side) client and different execution venues.In this case The client normally sends orders to the sell-side using the FIX protocol. Order Managements Systems are employed both with the buy-side and the sell-side, where the more complicated set up is found at the latter, Same time In contrast to an OMS, an EMS(Execution management system) is focused on real-time trading, real-time market data, and analytics. d analytics. An Execution management System typically offers the capability to manage orders across multiple trading venues, including exchanges, brokerage firms and alternative trading systems, sometimes with algorithmic support. Both types of systems have grown far beyond their roots and their semantic way to follow. So front office technology must be followed in those system for maintain to perticular oder for execution.

In Electronic trending system services similar to those offered by an exchange, in that case Customar can view ECN order book via a terminal or internet. Besically unknown customer did not understand the work function of terminal because thay didnot familer to this use interface and take time to understand the functional properties and the System function work. then they have use the terminal. In other hands Via internet showing the ECN order book much easy and understand the process.

An algorithm is a specific set of clearly defined instructions aimed to carry out a task or process. In the algorithimic trading  computers directly interface with trading platforms, placing orders without immediate human intervention. There are instances when a human trader isn’t able to handle enormous numbers of trading, and that’s when you need intervention of an intelligent algorithm.Algorithms have gained popularity in the trading landscape and many big clients demand it.Algorithmic trading, or computer-directed trading, cuts down transaction costs, and allows investment managers to take control of their own trading processes. Algorithm innovation continues to offer returns for firms with the scale to absorb the costs and to reap the benefits.