Order Management Systems (OMS) in alternative investment operations are simply a way to increase the speed, efficiency, and control over manual trading tasks that institutional investors face when planning their portfolio allocations. In our latest Vidrio blog we breakdown the advantages of having a solid OMS for your investment operations.
By: Garret Bluish, Client Solutions, Vidrio Financial
Trade execution in alternative investments is rarely the responsibility of a single team. Planned activity must move through Investment, Operations, Risk, and Compliance—often across spreadsheets, emails, and manual approvals—before a trade can be executed. As portfolios become increasingly complex and governance requirements intensify, these fragmented processes introduce operational risks, delays, and limited transparency.
In a previous post, we explored how Vidrio clients use the Transaction Editor to plan and model alternative investment activity. By uploading fund terms into Vidrio, firms can calculate subscriptions and redemptions for hedge funds, evergreen, tender, and interval funds, while also tracking commitments, contributions, and distributions across private market investments.
The Vidrio Trade Workflow: An Overview
The Vidrio trade process is organized around three core stages:
Together, these stages provide a standardized yet flexible OMS framework for executing alternative investment trades while maintaining governance discipline and operational efficiency.
Figure 1 illustrates the Vidrio Standard trade workflow. Many steps within this process are automated, enabling trades to move efficiently while preserving transparency and oversight.
Figure 1: The Vidrio Standard Trade Process.
Phase 1: Approvals
The first stage of the trade workflow focuses on governance and authorization. Planned trades are routed to the appropriate internal stakeholders for review and approval, based on the firm’s defined governance structure.
Vidrio supports two common approval models:
Committee-Based Approval
In this model, each member of the Investment Committee reviews the proposed trade and records a vote. Once all votes are submitted, the system tallies the results. If the trade fails to receive the required approvals, the workflow ends. If approved, it advances to the next stage.
Group-Based Approval
Under this approach, approval responsibility is assigned to a defined group. Any one member of the group may review and approve the trade. If approved, the workflow proceeds; if rejected, it concludes. This is the approach used in the Vidrio Standard trade workflow and is shown in Figure 2.
Figure 2: Group Approvals.
Regardless of configuration, the approval stage provides consistent functionality. Reviewers can examine trade details, preview the documents that will be generated, make permitted adjustments, and add instructions for the administrator. Figure 3 shows the approval interface.
Figure 3: Approval Application.
Multiple trades may be included within a single workflow. Each transaction is reviewed independently, allowing a process to continue even if certain trades are rejected—provided at least one trade is approved.
Once a trade receives the necessary approvals, the workflow automatically advances to document creation.
Phase 2: Document Creation
After approval, the workflow enters the document creation stage. This step is typically fully automated and configured during workflow setup. Based on predefined rules, Vidrio determines which documents are generated for each trade.
In the Vidrio Standard trade workflow, two documents are produced:
- An internal notification file.
- A trade ticket delivered to the administrator.
Figure 4 highlights this stage within the overall workflow.
Figure 4: Document Creation
Vidrio supports a range of output formats. While the standard workflow may generate PDF and CSV files, other formats—such as DOC or XLSX—can be produced to meet specific administrator or custodian requirements.
Figure 5 shows an example of a populated PDF trade ticket.
Figure 5: Sample PDF Trade Ticket
Clients may use Vidrio’s standard templates or provide their own preferred document formats. All generated documents are stored within the platform, creating a centralized record and a complete audit trail for future reference.
Once documents are created, the workflow transitions to delivery and confirmation.
Phase 3: Document Delivery and Confirmation
In the final stage of the workflow, trade documentation is delivered to administrators or internal operations teams. As with document creation, delivery is automated. Documents can be transmitted via email or SFTP, depending on client preference. Figure 6 highlights this stage within the Vidrio Standard workflow.
Figure 6: Document Delivery
Delivery paths can be dynamically determined using platform fields. For example, certain portfolios may be managed internally, while others are routed to external administrators. In some cases, administrator systems can automatically ingest incoming trade files, reducing manual handling and accelerating execution.
Workflows may also include confirmation steps, allowing administrators or internal teams to acknowledge receipt and processing of trades. This creates a clear audit trail, showing when trades were sent, received, and acted upon. Once confirmed, the trade status is updated to Executed. Upon receipt of contract notes, the Vidrio team reconciles executed trades to complete the lifecycle.
Trade execution in alternative investments involves multiple teams, systems, and handoffs. Vidrio’s workflow framework brings these steps together—supporting structured approvals, automated document generation and delivery, and comprehensive auditability.
By centralizing the trade process, Vidrio helps firms reduce operational risk, improve efficiency, and maintain transparency across Investment, Operations, Risk, and Compliance teams—enabling confident execution in increasingly complex alternative portfolios.
Vidrio is the premier alternative investment solution helping a wide range of alternative investors reduce complexity and gain simplicity, transparency, and clarity in their investment operations. Schedule a personalized demo with our team today at vidrio.com/learn-more.