NEW YORK, Dec. 8, 2010 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Order management and execution management systems, or OMSs and EMSs, are trading platforms that came into existence in the equities world, where they are an established part of the infrastructure in both buy- and sell-side institutions. Indeed, OMS can be considered a mature market, in that the majority of potential customers have already had one installed for a long time.
Features and benefits
The report shows how liquidity continues to fragment in Europe and begins to do the same in Asia Pacific.
It discusses the evolution of transaction cost analysis from a compliance to an optimization tool.
It considers the challenges to OMS/EMS from the move to multi-asset strategies.
The biggest and best-funded investment banks will certainly want to keep their offerings going and continue to devote development budget by adding new functionality to them, as they are an excellent means of maintaining a captive buy-side audience. Banks are, however, becoming more selective about whom they provide the systems to.
The growth in popularity in multi-asset funds, and therefore the increasing number being launched in the market, is a predictable reaction to the volatility that has characterized the cash equity markets since the global financial crisis broke out in 2007.
The main thrust of current legislative endeavors is intended to reduce banks' ability to take on risk by imposing more stringent capital requirements.
Your key questions answered
Will OMS and EMS platforms ultimately converge into so-called OEMS that does both order and execution management?
What are the challenges for handling multiple asset classes from a single OMS/EMS?
Will transaction cost analysis be offered primarily by OMS and EMS vendors, or will the dedicated TCA vendors continue to have a role to play?
TABLE OF CONTENTS
Ovum view 1
Key messages 3
INTRODUCTION: WHAT ARE OMS AND EMS? 8
Not all customers require both an OMS and an EMS 8
The buy and sell sides have different requirements from an OMS 9
THE ISSUES FACING OMS/EMS IN TRADE EXECUTION 13
Challenges require further technological development 13
Venue proliferation represents a challenge for EMSs to keep up with interfaces 13
Multi-asset capability is becoming an essential feature 14
Trading multiple assets and multi-asset strategies are two different things 15
Transaction cost analysis needs to go deeper and wider 16
Issues in the pre- and post-trade arenas 19
Tougher regulation is driving change in technology 19
OMS/EMS will not become full risk platforms 20
Compliance capabilities will grow 20
Should OMS and EMS converge? 21
Ongoing debate 21
Some market participants do not require a full OMS and EMS 21
Integrating OMS and EMS is an opportunity for messaging vendors 21
A lot of so-called OEMSs are still two separate products 22
Competitive Landscape 23
BNY ConvergEx Group 23
Charles River Development 24
Investment Technology Group (ITG) 26
List Group 28
Orc Software 29
RTS Realtime Systems (RTS) 30
Trading Technologies 31
Recommendations for enterprises 34
Recommendations for vendors 34
Alternative views 35
Further reading 36
Ovum Consulting 37
Figure 1: Example of how a multi-asset fund operates 12
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