An Order-Channel Management Framework for Institutional Investors

Efficient Order-Channel Management, i.e. the process of information gathering, evaluation, decision and control regarding the setup of the overall trading infrastructure and the actual order routing implementation plays a crucial role for trading success as well as the competitiveness of Institutional Investors. This article introduces a framework intended to support Institutional Investors in establishing an individual Order-Channel Management (OCM). For this overall goal, OCM is decomposed into its strategic and operational constituents and the involved key entities, parameters, processes and their interdependencies are outlined. Based on the identified properties, a framework is derived that aims at identifying a suitable mapping from order characteristics to execution venues.

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