Industry Data Model

Brokerage

The basic function of a brokerage firm is to execute buy and sell orders for clients.

There are two ways in which a broker can meet a client's trade request.

  1. The broker can act as an intermediary and match a customer's buy order with a third-party's sell order or vice versa. In this capacity, the broker acts as an agent receiving a commission.
  2. The broker can act as a principal and meet a customer's order from its own inventory. Revenue from this activity falls under the heading 'principal transactions' and may include gains and losses on the brokerage's own investments.

Full service brokerage firms continue to offer stock reports and a higher level of service than other brokerage houses. Discount brokerage houses dedicate themselves to execute orders for clients.

The brokerage industry is a cornerstone of the financial industry.

The Brokerage industry model set consists of Enterprise, Business Area, and Data Warehouse logical data models specifically developed for companies providing brokerage and securities trading services.

The Brokerage data models provide a complete and comprehensive front office data architecture that can be applied across the organization for applications development, reporting and analytics.

Security Trading Organization (STO)Channel
Financial ProductCommissions
CustomerTransaction / Trade Order
AccountFinancial Reporting
Customer Profile ("Know The Customer")Business & Performance Metrics
Marketing

The Brokerage model set can be seamlessly integrated with other ADRM Software Financial Services offerings and the STP/Securities Back Office Solution to accommodate expanded service requirements.