The Continued Convergence of the OMS, EMS
The line between a hedge fund or asset manager's order management system (OMS) and execution management system (EMS) has been blurring for quite some time. As Dallas Lundy, head equity trader at asset manager Atlanta Capital, told my colleague Jake Thomases last year, "Having all these things in front of you allows you to be faster and more efficient by having your eyes focused in a very limited amount of space, with more data in front of you."
Consultancy Tabb Group recently released a survey of 52 buy-side firms, which showed a fairly even split between asset managers and hedge funds. In that survey, 50 percent of respondents say OMS and EMS functionality should be merged, with 44 percent saying they should not. The other 6 percent were on the fence.
Clearly, there is no consensus on this debate. But the current trend is that buy-siders are working toward consolidating the number of EMSs on their desktops. According to Tabb, in 2006 the average number of EMSs on a trader's desktop was 6.3. In 2012, that number was down to 1.5.
And to address this downsizing, buy-side spending on EMSs has steadily increased since 2009. In 2013, Tabb estimates that hedge funds will spend $166 million on EMSs and asset managers will spend $119 million. In 2009, those numbers were $138 million and $92 million between hedge funds and asset managers, respectively. Since 2009, those numbers have risen every year.
The winners in this OMS–EMS conversion will be the vendors that can prove they provide complementary functionality, rather than too much overlap.
Functionality has to be the main focus in order to convince a trader to go through the painful process of an OMS/EMS switch. Combining those functionalities into a streamlined system is the differentiator.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
The IMD Wrap: Talk about ‘live’ data, NAFIS 2024 is here
This year’s North American Financial Information Summit takes place this week, with an expanded agenda. Max highlights some of the must-attend sessions and new topics. But first, a history lesson...
MarketAxess builds strategy around X-Pro
MarketAxess profits were down in Q1, but revenues were up and automation volume hit a record $94 billion.
Canada’s triparty repo launch aims to fill C$60bn void
Test trades on TMX/Clearstream platform represent “quantum leap” for creaking funding markets.
People Moves: NorQuant, Tradition, Duco, HKEx, SimCorp, Hazeltree, Xceptor, Broadridge, and more
A look at the past month’s people moves in the capital markets technology and data space.
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
This Week: BBH, AllianceBernstein add data solutions, Deutsche Börse-Nodal Exchange, and more
A summary of some of the latest financial technology news.
Consortium backs BGC’s effort to challenge CME
Banks and market makers—including BofA, Citi, Goldman, Jump and Tower—will have a 26% stake in FMX.
Symphony boosts Cloud9 voice offerings with AI
The messaging and collaboration platform builds on Cloud9’s capabilities as it embraces the AI wave in what CEO Brad Levy calls “incremental” steps.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
- BMO’s cloud migration strategy eases AI adoption