By Peter Gomber, Marco Lutat, Adrian Wranik (auth.), Daniel J. Veit, Dennis Kundisch, Tim Weitzel, Christof Weinhardt, Fethi A. Rabhi, Federico Rajola (eds.)
This booklet comprises the revised papers of the third overseas Workshop on company functions and prone within the Finance undefined, FinanceCom 2007, held in Montreal, Canada, in December 2007.
The quantity provides one invited paper on know-how for buying and selling and eleven contributions, that have been chosen from 35 submissions.
The papers provided during this quantity all take care of leading edge purposes of novel expertise similar to, e.g. service-oriented architectures or grid computing in banking and finance, and are grouped in sections on buying and selling versions and ideas; Banks, IT-Architecture and payment; company Networks and cost platforms; and data danger and consumer Management.
Read or Download Enterprise Applications and Services in the Finance Industry: 3rd International Workshop, FinanceCom 2007, Montreal, Canada, December 8, 2007. Revised Papers PDF
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Extra resources for Enterprise Applications and Services in the Finance Industry: 3rd International Workshop, FinanceCom 2007, Montreal, Canada, December 8, 2007. Revised Papers
Example text
Burghardt order groups using the best execution criteria. Subsequently, a specific weighting vector wr h for each order group h can be configured dependent on the applicable customer needs. Type of order Characteristics of the execution venues Characteristics of the client order Characteristics of the client Retail clients Price Characteristics of financial instruments Size of order Professional clients Costs Interval 1 … Speed Interval n Product group 1 Likelihood … Size Matching of weighted best execution factors and execution venues Product group m Nature Other considerations Exclusion criterion when choosing execution venues Fig.
Second, firms should apply a comprehensible evaluation system which separates high-potential venues from negligible venues. 3 Although the example execution venues are taken from Germany, the example could be extended to include international trading venues as well. 22 T. Conte and M. Burghardt Evaluation of Venues. According to Article 21(3), venues have to be evaluated in respect to the best execution factors. Consideration within the same product group is essential whereas the size of the order should not be reflected in the assessment since it is already accounted for in the best execution factor size.
Table 2 shows an example for m = 4 trading venues. Let a1, …, a6 denote the best execution factors in the following sequence: Price, costs, speed, likelihood of execution and settlement, size, and other consideration. 4 5 We will not elaborate on suitable data quality. Possible key performance indicators may be historical data on spread, reaction time, and the structure of rates and charges. If there is more than one performance indicator for a best execution factor, these indicators must again be (internally) weighted in order to determine their relative importance.