CASE STUDY : ORDER MANAGEMENT SYSTEM FOR PRIVATE WEALTH MANAGEMENT
Wissen was selected by a major global financial services firm, with a large private wealth management practice, to take its internal Order Management System to the next level. The firm wanted to implement Straight Through Processing for order booking and decided to provide an interface to the customers to enter orders electronically. Another key functionality that the firm needed was to add connectivity to Asian exchanges for trading. The firm also wanted to create a flexible, rule based commission calculation mechanism.
Wissen drew upon its financial services expertise and extensive experience in developing solutions for wealth management domain to design a robust system to meet these needs. The approach was to leverage the firm’s existing system for electronic order entry, and seamlessly integrate with it. This allowed the customer to place electronic orders using the existing system and these orders then automatically flew into the Order Management System. The new system was also integrated with the existing system’s order execution back-end component to enable the booking of orders to the firm and customer accounts. The other key functionality that was developed was to add connectivity to new Asian exchanges in Taiwan, Shanghai and Korea. Order routing configurations were setup to correctly route the orders through the firm execution framework to the new exchanges. Specific exchange related configurations were setup to honor the exchange timings and holidays. In order to meet the requirements for commission calculations, an elegant rule based system was designed. Using this system, the sales persons could setup various commission profiles, with features to calculate commissions based on the side of the order, quantity and amount. The system had the flexibility to create tiers of commissions based on these factors and the commissions could be specified as a flat amount or a percentage.
The enhanced Order Management System brought in tremendous efficiency to the order booking process. This system allowed the customers to place orders electronically, without interacting with an investment advisor or a sales person. Errors due to the earlier manual process were eliminated.