WHAT IS AN OEMS
I’m Glenn Rosenberg from Tiger Trading and today I want to talk about an OEMS.
WHAT IS AN OEMS? OEMS stands for Order Execution Management System. It functions as a technology that allows traders to manage orders and execute trades. There are hundreds of different sources of liquidity in the cryptocurrency market scattered throughout the globe. If there are ten, fifty, one-hundred different exchanges, an order execution management system will allow a trader to connect into all those different sources of liquidity via a single access point and then be able to manage all their orders, as well as execute trades on multiple exchanges, all from this single technology, single source.
LIQUIDITY ON CRYPTOCURRENCY EXCHANGES One of the issues that’s prevalent in the cryptocurrency market is that the market is fragmented. Liquidity is not the same at different exchanges. And traders don’t necessarily have the ability to find the best price at any given moment at any given exchange. One of the nice features about an OEMS is that from this single access point, you can look at your wallet, you can look at all the positions in your portfolio, all your orders in the market, and see in real time your profit loss as well as all the data points in the actual market.
ADVANTAGES OF ORDERS RESTING WITH OEMS UNTIL EXECUTION Another thing that’s nice about a good order execution management system is that you don’t have to physically place your order at each and every exchange. Rather, the order can rest within the OEMS until such a time that the market comes to your order, whether it’s to your bid or offer, at which point the system will then insert the order into whatever exchange that has the liquidity and then execute on that. The OEMS is an aggregated book and rests the order so it doesn’t appear on the exchange’s actual book and is therefore not visible to the market.
UNIFIED USER INTERFACES ACROSS EXCHANGES Another nice feature about an order execution management system is that because it’s a single access point with a UI designed by one company, the trader sees a unified interface that has continuity across multiple exchanges, providing predictability, and that everything is going to look the same and feel the same. When the trader places an order or views a quote, there is always the same look and feel consolidated in one place.
SEEING THE BIGGEST PICTURE — MULTIPLE SOURCES OF LIQUIDITY & SMART ORDER ROUTING — An OEMS is connected into multiple sources of liquidity. You’re using functionality like smart order routing, aggregated order books as well as aggregated market data and transparency. You have a good picture into what the global marketplace looks like. Whereas when you look at multiple exchanges simultaneously across different tabs, you might not see all the different changes to the marketplace and be more susceptible to things like spoofing off market fragmented liquidity, where with an OEMS, you have you have a tool that allows you to alleviate some of these pain points.
Thank you. If you have any thoughts or questions, please comment below. Have a look at TigerTrading.com sign up for the free beta and you’ll be able to experience firsthand how an OEM is functions and how it will help improve your trading experience.