Effective and accurate order management is fundamental to robust trading. However, managing and executing multiple outright care orders manually to complete a calendar roll for a client is complicated. The sheer volume of order flow is challenging and increases the error risk.
The evolving automation of advanced order management – such as GTP Stitching – will dramatically change the way traders manage order flow, allowing traders to handle more volume with less risk.
What is it?
Stitching is order management functionality that allows a trader to combine outright care orders to create a composite order for a listed strategy.
This functionality has been available as part of the standard GTP service for five years.
Support includes the creation of both futures strategies and options strategies. US equity option outright orders can also be stitched to create complex option orders.
Care orders can be split and then stitched to support client spreads with a tail.
Once created, the stitched composite can be executed directly on exchange or split across one, or many, trading algorithms.
Executions from the stitched composite order are automatically applied to the underlying client care orders.
In April 2021, ION released a new feature to support the stitching of bulked orders.
This feature addresses the scenario where a buy-side client rolls a position for multiple funds; and then sends a basket of sell outright orders and buy outright orders to their broker.
GTP supports, via existing functionality, the ability to bulk the outright orders to create a composite buy and a composite sell. GTP also supports stitching bulked orders so that a basket of buys and sells can be executed via a single consolidated strategy order.
Today, the bulked orders can be split and then stitched to support a spread with a tail.
Later this year, GTP will be enhanced to support the stitching of orders (outrights and strategies) to create a synthetic strategy order.
The GTP roadmap also includes plans to automate stitching, such that FIX care orders are automatically combined and executed via listed or synthetic strategy orders.
Follow ION Markets to receive updates on these upcoming OMS initiatives.
GTP Global order management
ION’s Order Management functionality efficiently supports all your workflows by providing comprehensive order management capabilities and execution tools. Handle your order flow no matter how large or complex and manage all your orders in one system using a comprehensive suite of workflow and execution tools.