The NASD Order Audit Trail System (known as OATS) requires broker-dealers to show the history of an order from the time the broker-dealer receives it until the time it is executed. When multiple trading platforms are utilized by a broker-dealer to process orders, each system can report only a part of the OATS requirements: one system submits all inbound reportable events, while the other submits all outbound reportable events. Due to the lack of matching order IDs and complete transaction flow information, broker-dealers with multiple platforms have a risk of not being in compliance with the regulations.
The Tradeware OATS Consolidatorâ¢ addresses these problems by receiving all of the OATS files from third-party systems and merging them back to the orders maintained at Tradeware. The Consolidator ensures the timestamps and the order IDs are correctly matched and submits the consolidated OATS file to the NASD on behalf of the member firm.
Said David Meredith, Tradewareâs CTO: âWe found ourselves in a unique position to deliver this solution to our clients. As the initial entry point for all orders, only Tradeware was able to consolidate all the information from the point the transaction is first entered â a key requirement for OATS. Working with partners and in some cases, competitors, we have been able to implement the Tradeware OATS Consolidatorâ¢ to support most major trading platforms.â
The Tradeware OATS Consolidator is available for immediate deployment for clients of MarketCenter, FIXLink and GlobalX and is currently in production for many of Tradewareâs existing OATS clients.