Paritech specialise in developing low touch stock market brokerage systems. These systems are ideal for brokerage firms focusing on providing trading services to advisory firms and asset management companies. Typically these firms require a brokerage solutions which enables them to deliver trading services at low prices with extensive use of APIs. Paritech provides a completely integrated solution for such firms which only needs to be coupled with a settlement provider.
Paritech brokerage systems include the following capabilities.
TotalView is our administration system for in-house staff. It provides one centralised location where all administration is carried out. No need to switch between different vendor’s screens to perform Administration. Large effort has gone into make the administration screens as easy as possible to use – minimising the amount of training needed by staff.
TotalView also carries out all the backoffice processes required by a brokerage firms. It carries out banking transfers, interacts with the settlement provider and collects information from registries.
The best way of reducing administration is to move it back to the source of the data. TotalView has an Advisor version which can be used by Advisory firms to onboard customers manually or correct customer information. Not only does this reduce the broker’s workload but it also ensures that the Advisor take more care with data correctness as it now becomes fully under their control.
One of the biggest costs to brokers is bringing new clients onboard. It is quite likely that many of clients will trade infrequently. Therefore it is vital that the onboarding costs are brought down as much as possible to ensure that even infrequent trading clients are still profitable.
Paritech have developed a sophisticated pipelined onboarding API that allows client applications to move through the stages of the onboarding process. Each application can stay in various stages while waiting for external input – for example, VADA identification.
We have also developed a web based user interface around the onboarding API. Advisory firms can choose between the user interface for a quick solution or the API if they want far closer integration with their internal systems.
Order Management Systems (OMS)
At the heart of every trading service there is an Order Management System. It accepts order requests from clients, vets them according to business and market rules, forwards approved order requests to market, provides execution requests back to clients and keeps track of holdings.
Trading through Paritech’s OMS is cash stock vetted at the account level. Advisory firms can specify comprehensive vetting rules either at firm level, advisor level or account level. Vetting rules can also specify that order requests are to be routed to DTR for manual vetting.
Our OMS also processes orders placed by other companies’ Order Management Systems – allowing you to see your full position – regardless of how orders are sent to the exchange. With our move into international trading, our OMS will shortly include the capability to trade in multiple currencies with the ability to buy foreign currencies to ensure international trades are protected against currency movements.
In order to trade, you invariably need data. Whether you just need end of day pricing or require detailed level 2 data, our API’s can provide the data advisory firms, asset management and algorithmic traders require.
While the primary order flow is via API’s, people still need trading terminals to view data, monitor their positions and place orders. Paritech’s Pulse terminal is a fully featured trading terminal available to both advisory firms and retail traders. In addition, Paritech also provide a web based terminal that allows end users to easily view their brokerage information and place orders.
With the advent of Exchange custom instruments such as ASX AQUA symbols, there is a growing demand for Market Making services that enable firms to provide liquidity for symbols. For example, a fund manager may wish for users to be able to purchase units in a fund with an ASX AQUA symbol. In this case the firm would have to ensure that there is always bid and offer positions on the market. Paritech Market Maker services provides a framework where firms can easily manage their bid and offer positions with simple software plugins into this service.
Algorithm Trading (coming soon)
In the past, some types of orders required experience traders to ‘work’ them. For example very large orders or orders for stocks in which there is not much liquidity. Paritech Algorithmic services allow API customers to place orders and have our algorithms work them. Customers no longer have to pay experienced traders or implement their own software algorithms to work these orders.
By making the bulk of our solution services available via APIs, we empower advisory firms, asset managers and traders to develop their innovative systems. No longer are they constrained by working with the broker’s website or having to interact with brokerage staff to co-ordinate information. These firms can develop their IT infrastructure which best services their customers and ensure there is a streamlined interaction with the broker.
Our main APIs cover the following brokerage areas:
• Data – provide access to a wide range of trading related data
• Trading – provide access to accounts, orders, holdings and other brokerage account information. This can be retrieved at account, advisor or firm level. In addition, as you would expect, the API also allows you to submit order requests for new/amend/cancel orders.
• Onboarding – allows you to onboard new customers and manage customer information.
If you are looking for a brokerage solution where API delivery, price and efficiency are key to your brokerage business, then please contact our sales representative for more information.