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“Prudential is always looking for more efficient and cost-effective services to offer our clients, and the NYBOT EOR system is an excellent example of that philosophy in action,” said Kevin Kennedy, Chief Technology Officer for Prudential Financial Derivatives. “NYBOT’s EOR system gives us many new benefits, including lightning-fast order flow to the trading floor, with more timely confirmations of the trade executions, and order tracking and audit trail capabilities.”
After the orders are sent to the trading floor, they are executed by a NYBOT member through open outcry, and then matched, cleared and confirmed. An important feature of the EOR system is that it can handle a wide range of complex orders, and can accommodate futures, options and sophisticated strategies -- the only routing system with the capability. “Our state-of-the-art EOR system, as well as the complimentary ATC and OBMS hand held applications, are an ideal way to make open outcry more efficient, as it allows users to more quickly send orders to the floor, and get their fill information back,” said C. Harry Falk, NYBOT’s President and CEO. “We are very grateful to be working with Prudential Financial Derivatives, the latest to employ this exciting system, and we are certain they will soon receive the benefits of employing this technology.”
The Order Book Management System (OBMS) allows a market user to send an order electronically to the broker in the trading ring, by way of the broker’s booth. The order can be routed to the floor trader in the pit who’s using a wireless handheld device. Once the order has been filled, the trader automatically sends a copy to both the clerk and NYBOT’s Trade Input Processing System (TIPS), for clearing. The EOR/OBMS are connected to NYBOT’s pricing system, which allows users to access timely market data.
Orders can be sent to the NYBOT trading floor via the NYBOT Graphic User Interface (GUI), a proprietary order routing system, or a 3rd party order routing system. Orders can be sorted by time received, commodity, buy/sell or customer account order. Telephone orders, which are the traditional method of placing an order at NYBOT, can be entered into the routing system from EOR-capable floor booths using a 15-inch touch screen monitor that is connected to a networked personal computer. EOR users can also get a connection to NYBOT’s SPQR pricing systems, which allows users to access timely market data.
NYBOT deployed the EOR system in all five of its soft commodities in 2002, and now sees an increasing number of orders being sent and executed on a daily basis. The system hit an all-time daily usage high on April 1, 2005, with over 200,000 orders routed to it since initial deployment in March 2002.
Prudential Financial companies, with approximately $500 billion in total assets under management as of December 31, 2004, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.
The New York Board of Trade (NYBOT) is New York’s original futures exchange, where the world trades food, fiber and financial products. For well over a century, the New York Board of Trade has provided reliability, integrity and security in a global marketplace for cocoa, coffee, cotton, ethanol, orange juice, pulp, and sugar, as well as currency and index futures and options. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com.
