The order management system (OMS) is the component that collects the orders sent from the strategies. The OMS keeps track of the order life cycle (creation, execution, amendment, cancelation, and rejection). Trading strategy orders are gathered in the OMS. The OMS may reject orders if an order is malformed or not valid (too large a quantity, wrong direction, erroneous prices, excessive outstanding position, or order type not handled by the exchange). When an error is detected in the OMS, the order does not go out from the trading system. The rejection happens earlier. Consequently, the trading strategy can respond faster than if the order was rejected by the exchange. Let's have a look at the following diagram, which illustrates these features of the OMS: