4OMS - The execution robot


Robot that assists the trading desk: 4OMS

4OMS is our highly capable order management component.

  • It is specialized in the order management and execution

  • It can execute the orders based on the execution algorithm client would decide on

  • Yes we are specialized in integrations in the Turkish trading eco-system, but 4OMS can be considered for any market across the globe

  • It is back-end neutral. i.e. it can be integrated to most b/end platforms available in Turkey. (Optimus, Tradesoft, Genex etc.)

4OMS has two major parts:

  • First part of 4OMS, the OMS, is basically responsible for the "parent order". This part basically listens to the market, and slices the parent order down to the child orders depending on the execution algorithm selected and configured by the user

  • Second part of 4OMS, the EMS, is responsible for the "child orders". This part basically executes the chunks of the parent orders that OMS module create via communicating with the broker through a designated protocol (e.g. FIX) and/or mid-server (e.g. EMSX of Bloomberg or TradeServer of Foreks/Turkey).

We provide the following execution algorithms to the client out of the box:

  • TGRT: Target. Client enters a limit price only, and 4OMS executes this order, as a SL or TP, once the market price touches to this level.

  • VWAP: Volume Weighted Average Price.  Pre-trade schedule based on historical volumes. Certain parameters are set by the user.

  • TWAP: Time Weighted Average Price. Executes desired quantity at a constant rate over time. Certain parameters are set by the user.

  • PERV: Percentage Of Volume. Targets a user-defined participation rate while the speed of the flow of orders in the market fluctuates

  • ISOF: Implementation Shortfall. Not provided out of the box. 

  • PAIR: Used for pair trades where the trader goes long on one stock and goes short on the other and meanwhile the trader makes sure that the net exposure of the total of the two sides remain around 0 at the time of the execution. 

With 4OMS, we as Verizekalı aim at catering for both the sell-side and the buy-side spectrum of the finance industry.

​How do we do it

In a nutshell, 4OMS:

  • ​Uses 3rd party integrations for the market data. (And yes, it is source-neutral. i.e. Our clients can integrate any data feed to 4OMS)

  • It is a .NET application

  • The all-round response time for one order is in the range of [60 ms, 140 ms] with an average of 80 ms

  • It has two integrated part inside. the OMS part (that applies the smart partitioning of the order), and the EMS part (that manages and executes the order chunks OMS releases over the trading period)

  • It can be integrated to any back/end here in Turkey

  • It can be integrated to other back-testing platforms such as WealthLab, NeuroShell, MT4, NinjaTrader, Bloomberg, and alike

What challenges do we address

We are well aware of the challenges our client deal with while they do their best in the field. 

  • Scalability: With the help of 4OMS, our clients can "work" infinite number of tickets within the day with the help of our 4OMS. One human can handle only a limited number of tickets in a day, but our software can handle many

  • Alternative execution strategies: Some orders require this type of execution strategy while the others require that. 4OMS can offer our clients all options they might need while meeting their clients' expectations

  • Flawless execution: Human traders can miss certain execution moments, machines don't

  • Efficient execution: 4OMS will help a lot to the clients minimize the market impact (of particularly the large orders)

  • Cost Efficient: The license fee of 4OMS should be a fraction of the cost of a human trader dedicated to work the orders

  • Leaner organizations, and processes

  • Broker Neutral: 4OMS, once considered by the buy-side, can be used as one centralized order router that routes different orders to the different brokers 

Use cases for 4OMS

4OMS can be positioned in numerous ways among our clients. Buy-side, Sell-side, the banks, the individuals all may find good use cases to deploy our product within their processes.

To give some examples, 4OMS might be considered:

  • As the sell-side dealer: 4OMS can "work the client flow" all the day - at a lower cost and with minimal errors 

  • As the buy-side portfolio manager: 4OMS can handle the basket orders, rebalancing orders, switch orders and portfolio shuffle orders with one click

  • As the time-saver for the individual: 4OMS can watch the markets and execute the trades on behalf of the user while the user feels no need to look at the markets all the day 

Our clients

© 2023 by Verizekalı Veri Teknolojileri Araştırma ve Geliştirme A.Ş.

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