Fiducitation- Trader Applications and Workstations
Author: Fiducite Staff
Capital Markets Team
Date: September 27,
2001 © 2001 Fiducite.com, Inc.
Fiducitation: A
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qualified sources on the Internet
Instructions: Each
citation has four parts: Fiducite Annotation, Clip, Source, and Cached File. The Annotation explains the significance of the citation;
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Table of Contents:
Order Routing /
Order Execution Vendors
Exchange
Workstations and Electronic Communications Networks
Workstation
Hardware Requirements
Although traders may use many
applications to make an order, they all fall into three categories.
·
Pre-Trade
Applications
·
Trade
Execution Applications
·
Post-Trade
Applications
Within each of these categories
there are dozens, hundreds, and maybe thousands of software products available
today. Pre-Trade applications generally
provide a combination of data feeds, content management, and investment
analysis. Data feeds usually originate from exchanges or markets, which are
sold to market data vendors, who in turn package it and resell it to their
customers. Trade Execution applications generally rout orders to exchanges
and/or other markets, in order to match buyers and sellers, and complete the
order. Order matching and trade management are some of the high level functions
within Trade Execution applications. Post-Trade Applications generally provide
settlement services, reporting functions.
Although there isn’t much analysis
on this software market available on the web, it is evident that the market can
be further divided by the intended audience.
·
Institutional
traders
·
Day traders
These two markets have vastly
differing needs and available solutions. Within that division, it is also
possible to distinguish the products by breadth of solution. Institutional
trader workstations such as TheBeast, is a complete solution. Others are just
slices of the big picture.
Overview of Trading Process
This slide from a presentation by
Bruce Weber at the School of Zicklin Business gives a high level overview of
the trading flows. This is a good overview of the functions and applications a
trader may have at his or her workstation.
Source_URL: Cached
File: 
A NYSE Trade: The People and Workstations Involved
This NYSE site gives an example of a stock trade involving two
individual investors, but it also details each step of the order until its
completion.
A Typical Trading Post
A: Post information display
B: Flat panel display screen
C: Point-of-sale workstation
D,E: Broker
F: Specialist
G: Specialist trading assistant
H,I: Wireless data system
Source:http://www.nyse.com/floor/howstockbought.html Cached File: 
Methods of Order Execution
This Securities and Exchange
Commission article highlights the possible paths to execute an order and also
offers links to recent rules passed by the SEC. By having so many options,
traders can have numerous applications for each path.
Source:http://www.sec.gov/investor/pubs/tradexec.htm Cached File: 
NASDAQ Market Data Vendors
Each exchange or market generates
its own data, and many companies aggregate the market data and resell it to
their customers. Below is the link to NASDAQ’s site listing all of its market
data vendors.
Source:http://www.nasdaqtrader.com/asp/vendor.asp?letter=A-F
Cached File: 
Data Feeds
This list of data feeds by
About.com gives a small sample of the enormous market data providers.
Source: Link
Cached File: 
Another List of Quotes and Market Data Providers
This list of providers offer
quotes and market data to day traders. This list is already long but there are
many more Pre-Trade applications when you consider tools such as stock screeners,
stock pickers, and stock analysis software.
Source: Link Cached File: 
Bloomberg
Among market makers and
institutional traders this workstation is pervasive. Commonly referred to as
the “Bloomberg Terminal”, it is one of the leading market data workstations.
Source: Link Cached
File: 
BigCharts.com Combines Data Feed with Analysis
As with many of the market data
providers such as Bloomberg, there is usually a balance of data collection,
data aggregation, content management, and analysis.
Source: http://bigcharts.marketwatch.com/ Cached File: 
Trader’s Resource Top 10 List of Day Trading Systems
Day traders use these trader
systems to help them devise their trading strategy. Another example of the wide
variety of Pre-Trade software.
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4. BUYSELL
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5. Omni
Trading |
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7. Aberration
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8. eASCTrend
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10. TCI
Corporation |
Source: http://technical.traders.com/Products/topviews.asp?cat=130 Cached File: 
Listing of Trader Software Vendors
This web site provides a
list of professional trader software vendors, including full spectrum order
execution workstations as well as data providers. The list includes a live link
to vendor web sites and brief descriptions of each product.
Source: http://www.moneycareers.com/real_time_tools.htm
Cached
File: 
The Beast
The CLIP image
below depicts the complete spectrum of services this vendor offers. Their web
site is also depicts the network architecture necessary to implement this
solution.
Source: http://www.thebeast.com/marketdata.html
Cached File: 
Bridge
This workstation has the
complete suite of pre-trade applications, order-execution functions, and much
more. To check this product offering, you must open either the Source URL
or Cached File, and click on “Products and Services” on the left side of
the screen. From there, click on workstation and you will be able to explore
the functionality of this offering.
Source: http://www.bridge.com/ Cached File: 
ILX
This workstation is another
example of a robust workstation with ample features.
Source: http://www.ilx.com/InsidePages/Products/products.html
Cached
File: 
InSite
This vendor neatly organizes
their line of applications and functions by asset class.
Source: http://www.insite.dbc.com/ Cached File: 
Reuters InterTrade Direct - Order Routing
Overview of the Reuters InterTrade
Direct Global Order Routing Service.
Source: http://about.reuters.com/ritd/order_routing/default.html
Cached File: 
Listing of Day Trader Direct Access Ordering Software
Source:http://www.daytradingstocks.com/directaccesssoftware.html
Cached
File: 
To trade on any exchange, a trader
can either go through the exchange’s floor brokers, through the exchange’s
workstations, through an approved third party workstation or through one of the
Electronic
Communications Networks (ECNs).
Each exchange determines the software and hardware requirements necessary to
trade on their exchange.
NASDAQ Overview of Participants
This overview by NASDAQ describes
its own workstation offering but also describes the other participants available
to trade NASDAQ stocks, such as Market Makers, order-entry firms, and
electronic communications networks (ECNs) / alternative trading systems (ATSs)
who make use of NASDAQ’s transaction services.
NASDAQ offers its market
participants a workstation of its own, called NASDAQ Workstation II®
(NWIITM). It offers many basic and additional services, such as
Small Order Execution ServiceSM (SOESSM) and SelectNet®.
Source: http://www.nasdaqtrader.com/trader/tradingservices/tshome.stm
Cached File: 
NASDAQ Workstation Preparation Guide
This preparation guide for professional traders choosing to
use a NASDAQ workstation must comply with the exchange’s software, hardware,
cabling, and network requirements before a workstation is provided.
Source_URL: Cached File: 
List of NASDAQ Broker-Dealers
Source: http://www.nasdaqtrader.com/asp/sellside.asp?letter=A
Cached File: 
Electronic Communications Networks (ECN’s)
This describes the role of
ECN’s and also lists them. Although they are relatively new, approximately 30%
of all stocks are traded through ECN’s.
Source:http://daytrading.about.com/library/weekly/aa061601a.htm
Cached
File: 
NYSE Equipment and Workstations
This web site describes the
equipment used to complete orders.
Source:http://www.nyse.com/floor/equipment.html
Cached File: 
Chicago Mercantile Exchange Workstation Options
Source:http://www.cme.com/electronic_trading/trading_access/index.cfm Cached File: 
NASDAQ Workstation Requirements
Source_URL Cached File: 
Basic Infrastructure for Day Traders
Source:http://daytrading.about.com/library/weekly/aa112200a.htm Cached
File: 
Workstation Guide
This step by step guide
describes the hardware choices and requirements to build a day trader
workstation.
Source: http://www2.elitetrader.com/ha/guide/index.cfm
Cached File: 
Top 10 List of Workstation Hardware Vendors
This web site applies
directly with day traders approval of certain hardware solutions. To see the
complete list of vendors go to Source URL below and click on “Products” on the
left side of the screen and then press “Hardware”.
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Source: http://technical.traders.com/Products/topviews.asp?cat=80 Cached
File: 