Boston-based investment technology provider Eze Software Group has been granted a patent by the United States Patent and Trademark office under the United States Patent Number 8,352,353 for its execution management system, the RealTick EMS.
The company itself is a fledgling as it was founded just last week, however it began operations as a result of the acquisition of Eze Castle Software, RealTick, and Tradar by TPG. The new Eze Software Group brings together these established solutions, to create a full suite of front, middle, and back-office tools for asset managers.
As a company which was built as a result of the merging of three established industry participants, Eze Software Group has an established structure and partners with more than 1,500 buy-side and sell-side institutions in 30 countries across North and South America, EMEA, and Asia Pacific.
Its clients include broker-dealers, endowments, family offices, hedge funds, institutional asset managers, mutual funds, pension funds, and professional individual investors. The company employs approximately 750 people in 12 offices worldwide.
The creation of Eze Software Group presents an opportunity to provide new type of functionality to meet the requirements of the technology side of the industry as it evolves. The company’s RealTick EMS product was issued a U.S. patent for electronic trading, exemplifying and strengthening its offering.
This particular patent covers the proprietary technology and methodology for the staging of electronic orders into a neutral (aggregation) account for execution, providing ultimate flexibility and workflow efficiency to traders while maintaining their anonymity.
“We are excited to have been issued this patent,” said Daniel Rooney, president of Eze Software Group’s RealTickEMS division. “RealTick has always been a leader in providing multi-broker functionality and this patent recognizes that strength. Since its release, a majority of our customers have adopted Neutral Account Staging for aggregated orders as their preferred workflow.”
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This proprietary staging workflow provides RealTick EMS users with a high level of control for multi-broker trading. Traders can stage orders without committing to a specific broker, and then send portions of the staged order to multiple brokers.
“RealTick’s patented method uses a two-tier accounting system, where the parent-order is staged into a neutral aggregation account and each child-order is placed in a broker sub-account,” said Derek Gover, director of trading systems development for Eze Software Group’s RealTick EMS division and co-inventor of the patented system. “The details of the child-order are revealed only to the broker executing that portion of the order.”
The trader remains in control of execution decisions at the time of the trade, but each broker in RealTick’s extensive broker-dealer network controls attributes of their sub-accounts, such as suitability rules, credit checks, and short locates.
RealTick’s patented Neutral Account Staging method simplifies and streamlines the order management process for multi-broker trading, providing greater control and workflow efficiency to both buy-side and sell-side customers.
“This is an important and exciting milestone for Eze Software,” said Tom Gavin, chief executive officer of Eze Software Group. “It is a testament to the talent and expertise of our employees, and of our dedication to providing innovative and cutting-edge technology solutions.”
Order Execution – North America in Front
RealTick EMS is a broker-neutral global execution platform providing comprehensive trading, data and risk solutions. It also has cross-asset execution capabilities with access to a network of more than 200 brokers worldwide.
North America continues to be home to companies which concentrate their efforts on order management technology. While RealTick EMS allows broker-neutrality for traders as end users, there is a series of companies which provide their services to the industry participants themselves to fine tune the execution process.
As two recent examples, Redline Trading Solutions expanded its New York base as further institutional clients have taken on the company’s accelerated ticker plant and execution gateway modules are helping buy-side and sell-side firms achieve faster, more deterministic performance while lowering development and operational costs, and UK-based LMAX Exchange formed a partnership with Californian company Azul Systems to optimize execution performance.