Editor’s Letter: Not Your Father’s OMS

Considering the tough times on Wall Street and the scores of workers who are required to take on additional responsibilities, it’s no surprise that order management systems (OMSes) have been drafted to do more than simply process trades. Now, financial firms are looking for OMSes that keep trades pure and clean and prevent New York Attorney General Eliot Spitzer’s foot soldiers from appearing at the front door with a search warrant. Headlines decrying improper trades, especially the recent scandals inside the mutual fund community, only bolster the case for an OMS that serves as the first line of defense against the often ethically questionable maneuvering that can occur in financial markets around the globe.

In our special Waters OMS section we reveal the new trends in this growing market sector; how OMS vendors are tackling the thriving but often underserved fixed-income market; and how STP still matters, even if no one really wants to talk about it anymore. Robert Stowsky, president of Brook Path Partners, shares his ideas about how OMS vendors can start to focus their attention on an oft-overlooked market segment: small and midsize financial firms. Big banks aren’t the only ones that require a robust OMS--the new batch of hedge funds and boutique investment firms need something more powerful and nimble than Microsoft Excel to prepare for the return of the bull market. Soon, OMS will stand for Our Money Strategy.

Phil Albinus, Editor, Waters
Palbinus@riskwaters.com