2

Step 2Buy-Side Trading

Investing institutions must manage orders prior to releasing them to the market; they must track orders in the markets before they receive confirmation of an execution; and they may need to cancel all or part of an order before it is executed. In many situations orders are not simply handed off to the sell side as might have occurred in the past.

Instead, orders are actively managed during the execution process. This can involve monitoring and actively engaging multiple trading venues as well as the sell side in a changing process while the order remains active. Several different pieces of technology assist in this process. Figure 4.2 shows the buy-side trading process.

Figure 4.2 Step 2: Buy-side trading implements the ...

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