Asset Management Trade Order Management Systems Update 2004

June 25, 2004

Abstract

New York, NY, USA June 25, 2004

Celent predicts that global IT spending on buy-side order management systems will reach US$168 million by 2007.

In a new report, " ," Celent examines the buy-side OMS marketplace. The report identifies the major trends, and profiles the leading players.

Adoption of order management systems is highest among large financial institutions, and these firms frequently have more than one solution installed. Multiple solutions are the result of legacy systems, acquisitions, varying demands on trading in multiple asset classes, and firm preferences. Small to medium-sized firms are likely to hold off on rapid adoption until industry standards solidify, and the prices of order management systems lower due to an increasing number of providers. Figure 1 shows new IT spending on Trade Order Management Systems, which should reach US$168 million by 2007.

"In the United States and the UK, there are over 9,000 registered investment advisors, and only 1,500 have bought OMS systems from leading providers. A significant number do not generate the trading volume to warrant the purchase of an order management system," said Denise Valentine, a Celent analyst and author of the report. "Interdependency in the industry is such that true automation of trade execution and settlement requires greater participation in the trading network."

Vendor Firms and Their Trading Solution
Firm Product Name
Advent Software Moxy
Charles River Development Charles River IMS
DST International Hilnvest
Eze Castle Software Traders Console
Financial Models Company FMCModel, FMCTrade
INDATA Precision Trading
Latent Zero Capstone
Linedata Services LongView Trading
Macgregor XIP
SS&C Technologies Antares
SunGard Investment Management Systems Decalog
Thomson Financial Oneva Trade EQ
Source: Vendors

Although the journey continues to be a slow one, trade industry protocols are moving toward standardization, and asset managers chip away at internal straight-through processing. In the regulatory environment of today, which calls for greater transparency and stricter, documented internal controls, improved technology in the front-office is a logical conclusion," said Valentine.

A Table of contents is available online.

All Members of Celent Communications’ research service can download the report electronically by clicking on the icon to the left. Non-members should contact info@celent.com for more information.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

New York, NY, USA June 25, 2004

Order Management Systems  Update 2004

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET TRENDS 6
  Decision Support 7
  Pre-Trade Compliance 9
  Trade Order Management 10
  Post-Trade Compliance 12
  Metrics Dashboard 13
  Algorithmic Trading  13
  Partnerships 13
  Transaction Cost Management 14
VENDOR PROFILES 16
  Advent Software 16
  Charles River Development 17
  DST International 19
  Eze Castle Software 21
  Financial Models Co. 22
  Indata 23
  Latent Zero 24
  Linedata Services 26
  MacGregor 27
  SS&C Technologies 29
  Sungard Investment Management Systems 30
  Thomson Financial 32
OVERVIEW OF SOLUTIONS 33
FUTURE TRENDS 43
OBJECTIVITY & METHODOLOGY 43

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