ETNA Blog | Financial Technology Insights

Typical software structure of a Broker-Dealer

Every broker dealer has three departments:

  • Front-Office
  • Middle-Office
  • Back-Office

Sometimes, middle-office and back-office are merged into the single department where the functions of middle-office are split between front-office and back-office.


Front-Office software UIFront-Office is an application for end users (traders). In general, it should contain:

  • Trade Ticket
  • Orders History
  • List of Positions
  • Account Balance

the following components can be included for research and analytical purposes:

  • Chart with Technical Analysis
  • Market Scanner
  • Heat Map

In other words, that is a main entry point for retail customers of the brokerage firm where they can find any information related to the account and do a trade.


The main function of middle office can be described as “Order Control”. The order control system verifies accounts and securities while it goes into the execution.

  • Client Master Database – contains client information required to process transactions and data, such as SSN, State ID, and account funds.
  • Security Master Database – contains specific information about  security needed to process transaction, calculate margin requirements, set up dividends and interest payments.
  • Orders Matching System – fills the information fields that every order must have.


Back-Office takes the order from the point of execution to the settlement:trading Back-Office software

  • Margin – monitoring client accounts to ensure that they are operating within the Regulation T rules, Self-Regulatory organization rules and Brokerage rules (also known as “house” rules)
  • Settlement – optimization of the security of the firm and funding resources in the settlement of transaction.
  • Accounting – list of all accounts, security movements, positions and funds.

By Leonid Kurguzov, ETNA Software

Financial Technology Innovation since 2002

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