An Order-Channel Management Framework for Institutional Investors

Efficient Order-Channel Management, i.e. the process of information gathering, evaluation, decision and control regarding the setup of the overall trading infrastructure and the actual order routing implementation plays a crucial role for trading success as well as the competitiveness of Institutional Investors. This article introduces a framework intended to support Institutional Investors in establishing an individual Order-Channel Management (OCM). For this overall goal, OCM is decomposed into its strategic and operational constituents and the involved key entities, parameters, processes and their interdependencies are outlined. Based on the identified properties, a framework is derived that aims at identifying a suitable mapping from order characteristics to execution venues.

IT-Driven Execution Opportunities in Securities Trading: Insights into the Innovation Adoption of Institutional Investors

Technological innovations change the intermediation relationships within securities trading. Thus, thequestion arises which factors drive or hinder their adoption. This paper develops a model to evaluateinstitutional investors\u27 intentions to adopt the meta-technology we call non-delegated order handling.It focuses on the usage of IT-driven trading systems which enable investors to control the choice oftrading venue, order slicing, and timing themselves instead of delegating the execution of stocktrading to an intermediary. Therefore the theory of task-technology-fit is integrated into thetechnology acceptance model. Further, it was successfully tested on data from the largest Europeaninstitutional investors. The results outline that the perceived fit among the system‟s capabilities andindividual trading requirements is the main driver for adoption. Secondly, performance expectationsfuel the intention to use trading innovations. Thirdly, for the expected efforts only a weak effect couldbe shown. Finally, factors like contractual barriers and competitive pressure which investors cannotcontrol do not substantially affect their adoption decision