Broker Commission Allocation System
Methods and systems for allocating trades to multiple brokers are disclosed. An execution algorithm for an order is selected. A weighting allocation is for the order to brokers is specified. The order is allocated based on the weighting allocation and execution algorithm. The order is subsequently transmitted for execution.
1 . A non-transitory computer readable medium having executable code stored thereon, that when executed, causes a computing device to perform operations comprising:
selecting an execution algorithm for an order;
specifying a weighting allocation for the order to at least one broker;
allocating the order based on the weighting allocation and execution algorithm; and
transmitting the order for execution.
2 . The non-transitory computer readable medium of claim 1 , wherein the operation of selecting an execution algorithm for an order comprises:
determining at least one algorithm based on the order; and
receiving a selection of the execution algorithm from the at least one algorithm.
3 . The non-transitory computer readable medium of claim 1 , wherein the operation of selecting an execution algorithm for an order comprises:
determining at least one algorithm based on the order; and
dynamically selecting the execution algorithm from the at least one algorithm.
4 . The non-transitory computer readable medium of claim 1 , wherein the operation of allocating the order comprises:
splitting the order into a plurality of child orders, wherein each child order is associated with a respective broker.
5 . The non-transitory computer readable medium of claim 1 , wherein the operation of transmitting the order for execution comprises:
transmitting the order comprising a plurality of child orders to the at least one broker for execution, wherein each of the plurality of child orders is associated with a respective broker instructing the respective broker to execute a portion of the order based on the weighting allocation.
6 . The non-transitory computer readable medium of claim 1 , wherein the operation of transmitting the order for execution comprises:
transmitting the order comprising a plurality of child orders to an exchange for execution on behalf of each broker corresponding with a child order based on the weighting allocation.
7 . The non-transitory computer readable medium of claim 1 , wherein the operation of allocating the order comprises:
processing a commission budget;
automatically allocating to each of the at least one broker a portion of the order based on the processed commission budget; and
implementing at least one automated order for execution based on the automatic allocation.
8 . A method for allocating order flow for trade execution, comprising:
selecting an execution algorithm for an order;
specifying a weighting allocation for the order to at least one broker;
allocating the order based on the weighting allocation and execution algorithm; and
transmitting the order for execution.
9 . The method of claim 8 , wherein selecting an execution algorithm for an order comprises:
determining at least one algorithm based on the order; and
receiving a selection of the execution algorithm from the at least one algorithm.
10 . The method of claim 8 , wherein selecting an execution algorithm for an order comprises:
determining at least one algorithm based on the order; and
dynamically selecting the execution algorithm from the at least one algorithm.
11 . The method of claim 8 , wherein allocating the order comprises:
splitting the order into a plurality of child orders, wherein each child order is associated with a respective broker.
12 . The method of claim 8 , wherein transmitting the order for execution comprises:
transmitting the order comprising a plurality of child orders to the at least one broker for execution, wherein each of the plurality of child orders is associated with a respective broker instructing the respective broker to execute a portion of the order based on the weighting allocation.
13 . The method of claim 8 , wherein the operation of transmitting the order for execution comprises:
transmitting the order comprising a plurality of child orders to an exchange for execution on behalf of each broker corresponding with a child order based on the weighting allocation.
14 . A system comprising:
an allocation management module, coupled to a network, configured for:
selecting an execution algorithm for an order;
specifying a weighting allocation for the order to at least one broker; and
allocating the order based on the weighting allocation and execution algorithm;
and
a transmission unit, coupled to the allocation management module and the network, configured for:
transmitting the order for execution.
15 . The system of claim 14 , wherein the allocation management module is further configured for:
determining at least one algorithm based on the order; and
receiving a selection of the execution algorithm from the at least one algorithm.
16 . The system of claim 14 , wherein the allocation management module is further configured for:
determining at least one algorithm based on the order; and
dynamically selecting the execution algorithm from the at least one algorithm.
17 . The system of claim 14 , wherein the allocation management module is further configured for:
splitting the order into a plurality of child orders, wherein each child order is associated with a respective broker.
18 . The system of claim 14 , wherein the transmission unit is further configured for:
transmitting the order comprising a plurality of child orders to the at least one broker for execution, wherein each of the plurality of child orders is associated with a respective broker instructing the respective broker to execute a portion of the order based on the weighting allocation.
19 . The system of claim 14 , wherein the transmission unit is further configured for:
transmitting the order comprising a plurality of child orders to an exchange for execution on behalf of each broker corresponding with a child order based on the weighting allocation.
20 . The system of claim 14 , wherein the allocation management module is further configured for:
processing a commission budget;
automatically allocating to each of the at least one broker a portion of the order based on the processed commission budget; and
implementing at least one automated order for execution based on the automatic allocation.