Introduction to third-party trading integration

Introduction to third-party trading integration

In addition to trading on Schwab's Web Trading platform, firms that currently utilize an order management system (OMS) or similar software provider may be interested in adding another level of integration to leverage their OMS investment.

Contact your relationship manager to find out if your firm can benefit from trading integration.

Key features related to third-party trading integration:

  • Reduce error rates by eliminating manual intervention and rekeying of data.
  • Decrease processing time.
  • Increase the overall efficiency of back-office operations.
  • Minimize settlement risk with straight-through processing.
  • Trade with any broker-dealer who utilizes the Financial Information eXchange (FIX®) messaging protocol.

Key information regarding third-party trading integration:

  • Schwab supports trading integration with leading OMS providers. For specific information, please contact your OMS provider.
  • Schwab supports trading and allocations from multiple order routing networks (ORNs). For specific information on supported order routing networks, please contact the appropriate Schwab Advisor Services™ (SAS) trading desk.
  • FIX trading integration is currently available for Equities, Options, ETFs, Mutual Funds, Prime Broker, Trade Away, and Equity Allocations, on a case-by-case basis through certified approved OMS providers.
  • Trading integration through a Secure File Transfer Protocol is available for Mutual FundsPrime Broker/Trade Away, and Equity Allocations, on a case-by-case basis through certified approved OMS providers.

What type of firm might benefit from using FIX integration with their existing OMS?

Generally, large firms that are confident traders in the equity markets benefit from using FIX integration with their existing OMS. These firms trade with multiple brokers and have direct access to broker-dealers and alternate sources of liquidity.

 

How does an advisor get set up to use a FIX connection?

If you use an OMS, notify your OMS vendor that you want to establish a FIX connection with Schwab. If you do not use an OMS, you will need to choose one. Schwab does not recommend any particular OMS provider.

 

How does an advisor get set up to use an SFTP connection?

Check with your OMS provider to confirm that they offer SFTP integration. If you do not use an OMS, you will need to choose one. Schwab does not recommend any particular OMS provider.

 

Is there a cost to trade using a FIX-enabled OMS?

Check with your OMS provider. There is a cost to purchase a FIX-enabled OMS, plus a FIX setup cost and a monthly fee for the dedicated line to the ORN. Contact the SAS equity trading desk for information about Schwab charges for OMS trading.

 

How should advisors submit allocations?

Schwab can integrate submission of your allocations from multiple third-party systems. For assistance with integrating trades from your system, contact your OMS provider of the SAS equity trading desk.

How to trade equities, mutual funds, and options through the Web Trading platform

Introduction to equity trading

Introduction to fixed income trading

Introduction to general trading

Introduction to mutual fund trading

Introduction to order routing and execution

Introduction to Prime Broker transactions

Introduction to Trade Away service

Introduction to the Web Trading platform

For more examples of how an OMS can help your business, refer to Integrating Technology Into Your Practice: Keys to Improving Productivity.

 

Refer to Schwab's Web Trading File Specifications for instructions on formatting trade files transmitted directly to the Web Trading platform.

 

Read about the differences and risks of extended-hours trading.