OpenIM The Open Investment Model

SD-06.3 — Execution Venue & Broker Management

Business Domain: BD-06 Trading & Execution (Front office) · Applies: PUB

Purpose

Manages the universe of counterparties and venues the desk can trade with — who the firm may trade with, and where. Execution Venue & Broker Management maintains the approved-broker and venue lists, monitors the counterparties’ trading risk, and keeps the connectivity that lets the desk reach the market. It defines the choices SD-06.1’s routing and SD-06.2’s execution draw on.

Service Operations

  • Maintain the approved broker and dealer list — onboard brokers and dealers, run their due diligence, and periodically review them.
  • Maintain the execution-venue list — onboard and classify the venues the desk routes to.
  • Monitor counterparty trading risk — track counterparty credit and the trading lines against them.
  • Manage trading-commission arrangements — the commission rates and commission-sharing arrangements with brokers.
  • Produce broker and venue scorecards — the performance scorecards, fed by the execution-quality data from SD-06.4.
  • Manage connectivity — the FIX sessions and venue and platform onboarding.

Inputs and outputs

  • Inputs: counterparty due-diligence data; the execution-quality data from SD-06.4; market-structure information.
  • Outputs: the approved broker and venue lists, the commission arrangements and the connectivity — consumed by SD-06.1 (routing) and SD-06.2 (execution).

Entities

  • Consumes: Legal Entity (E-01) — brokers, dealers and venues as roles of the party master; the SD-06.4 execution-quality data.
  • Owns: none — the approved lists are operating-model artefacts.

Standards

  • The MiFID II venue taxonomy — regulated market, multilateral trading facility, organised trading facility, systematic internaliser — and, for the US, exchanges, alternative trading systems and swap-execution facilities. The venue taxonomy spans equity, fixed-income and FX venues, not equity exchanges alone.

Open extensions

  • The boundary with SD-02.8 — SD-06.3 manages brokers for execution; SD-02.8 manages and pays providers for research, and commission-sharing arrangements straddle the two.
  • The boundary with SD-17.8 Vendor, Outsourcing & Service-Provider Oversight on the commercial relationship.

Built from open-investment-model v0.3.0 · f7452ad