Tradeware unveils OATS III compliance technology

The new solution, available in conjunction with Tradeware's Market Center, FIXLink and GlobalX solution suites, enables broker-dealers to have one consolidated file for OATS III compliance and submission, by aggregating and matching all OATS files from third-party systems.

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 Consolidator 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, Tradeware's CTO: "We 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 – a key requirement for OATS. Working with partners and in some cases, competitors, we have been able to implement the Tradeware OATS Consolidator to support most major trading platforms."