Trading Systems and Execution Infrastructure
OMS/EMS logic, execution controls, market data and routing, and workflow design for commodity desks
Trading Systems and Execution Infrastructure
Executive Summary
A trader who wants to buy 100 contracts (100,000 barrels) of WTI faces a market where a single market order can push the average execution price 5–15 cents per barrel above the initial quote—a cost of 50,000–150,000 on an 8 million order. Professional traders use execution algorithms and trading infrastructure to reduce market impact and cost. This module covers market impact mechanics, execution algorithms (VWAP, TWAP, implementation shortfall), high-frequency trading and microstructure, and how execution fits with OMS/EMS and workflow design for commodity desks. For practitioners and consultants, mastery supports desk setup, execution quality, and advisory work.
Learning Objectives
By the end of this module you will be able to understand market impact and how large orders affect prices and execution costs, evaluate execution algorithms and their role in minimising market impact, calculate execution costs (market impact + liquidity cost + opportunity cost), design optimal execution strategies given order size and time constraints, and analyse high-frequency trading and its role in market efficiency.