Feature of the Month: QEngine Aggregation and Allocation Capability
Wealth Management is never going to be less digital than it is now. Google search queries for “Robo-Advisor” yield over 31 million results and there are over 100 robo-advisory services available today. What must wealth managers do to differentiate their business?
Offering a seamless digital wealth management service that is relevant, affordable, and user-friendly needs to have two things- an attractive front-end (the customer touchpoint) and a faultless backend that orchestrates process orders, trades, and other back-office activities smoothly. The complexity of crafting this straight-through process is key to growing your digital wealth management business.
Intelligent automation in wealth advisory is complicated. Most digital wealth management companies provide little to no order management or straight through order execution capability. This means financial institutions need to consider third-party vendors to complete the process or create a manual workload that will make it difficult to scale their business
A Closer Look: Aggregation and Allocation Module on QEngine
After a customer makes an instruction whether to buy, sell, top-up, withdraw, or rebalance, there are several processes and checks that need to happen before the order is considered fulfilled. Pre-trade validation, order generation and execution, position management, and reconciliation require the support of high performant software and intricate quantitative solutions.
Quantifeed provides extensive order management and execution functionality that interfaces directly with numerous brokers and trading venues. Our order aggregation facility reduces the cost of execution, provides efficient execution of orders, and passes on a fair price to our clients and users. Some of the distinguishing features of Quantifeed’s order aggregation include:
Highly configurable to different order flows and order types
Works with different asset types (such as stocks, funds, ETFs)
Includes an extensive set of tools to configure, inspect, control, and support the process of aggregation
Adaptable to multiple order flows (such as rebalance, and user-initiated placement)
Integrates with Quantifeed notification system for notification of multiple aggregation related events
These features will make for easy management over thousands (if not more) of orders that would otherwise be too costly to maintain. Closely aligned to order aggregation is the process of trade allocation. Quantifeed’s trade allocation module includes the following capabilities:
Supports multiple trade allocation algorithms that deal with fully and partially filled orders
Customised trade allocation algorithms (implemented as “plugins”) to each client and flow
Standard algorithms that preference close-out orders, weighting and/or sequence of order (also supports external allocation of trades to orders)
Highly configurable and adaptable trade allocations (fill-based, time-based, event-based, and manual-based triggers)
Provides users with best and consistent prices
Quantifeed’s order aggregation and trade allocation modules on QEngine are highly configurable to our clients’ needs to offer best-in-class execution capabilities. The facility is designed to provide a flexible way of reducing the cost of execution and an efficient execution of orders. This translates to cost savings that can be passed on to the customer. It also benefits them by allowing for customised trade allocation algorithms dealing with partial execution orders. In addition, it provides a high degree of visibility and selectable control over the process and timing of both aggregation and trade allocation. All this easily integrates with Quantifeed’s notification system for alerts of multiple aggregation related activity, giving administrators full view and control over every event. These capabilities (and more) are neatly wrapped in one of Quantifeed’s QEngine capabilities called “QEngine Trading”.
QEngine Trading supports the end-to-end trade and order management process from the investor to trading venue, to settlement and reconciliation. It provides full support for banks and financial institutions to provide a delightful wealthcare service for their customers. QEngine Trading consists of multiple functionalities including assessments for validation, order generation and execution, aggregation, allocation and more. It can also be customised to plug any gaps that your wealth management business may have. QEngine Trading can be plugged into existing infrastructure or external systems to provide businesses the exact capability it needs. Its fully automated facilities will help your business run smoother, grow stronger, and scale faster.
Curious about how QEngine Trading can help your wealth business? Read more about our technology or contact us today to have a discussion.