Buy Side Order Management Systems: Providing More for Less

by Anshuman Jaswal, PhD, November 23, 2011
Vendor Reviews
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Falling margins and rising costs due to volatility mean that order management systems users are demanding more value for their money. The industry’s business and pricing models are changing, and vendors are having to become much more flexible in their approaches. While the leading vendors are still growing and acquiring new clients, the competition has become more severe. In the last few years, a spate of acquisitions has created a more compact market, where continuous innovation is key.

The OMS market has been going through a period of transition. It has had to cope with the aftermath of the financial crisis and the need for improved technology for multiasset and high frequency trading. While buy side firms are well aware that there will always be best-of-breed solutions for different asset classes and requirements, they are interested in having a solution that meets most of their needs without having to resort to another OMS and that minimizes their requirements for execution management systems (EMS) wherever possible. As a result, the market has become more challenging for leading OMS vendors. In this report, Buy Side Order Management Systems: Providing More for Less, Celent analyzes the offerings of the leading order management system (OMS) vendors.

After being affected by a slight fall in the spending in 2009, the industry has been able to recover and is projected to grow at almost 6% between 2011 and 2015. Growth might be lower than expected, but the slowdown in the mature markets in the US and Europe will affect demand from the leading firms in these markets. It will take some time before demand from newer, smaller clients in mature markets combined with demand from emerging markets can become an engine for future OMS industry growth.

“OMS vendors are having to meet with the challenging requirements of low cost and high performance,” says Anshuman Jaswal, Celent Senior Analyst and author of the report. “Multiasset functionality is the new standard, and higher risk and regulatory requirements mean that compliance modules have become crucial as well.”

This report looks at the latest trends and challenges that are facing this industry and how market players are reacting to these changes. The report also compares some of the features of the leading OMS products, followed by product profiles.

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

Executive Summary

3

Introduction

7

Market Overview

9

 

Key Drivers of Demand

9

 

Market Characteristics

11

 

Key OMS Functions

14

Vendor Discussion

15

 

Advent Moxy

17

 

Bloomberg Asset and Investment Manager (AIM)

21

 

Charles River Development

24

 

ConvergEx Eze Castle Software (Eze OMS)

28

 

Fidessa OEMS

32

 

ITG Magregor XIP

35

 

Linedata Longview

39

 

SunGard Asset Arena Manager

44

Conclusion

48

Leveraging Celent’s Expertise

50

 

Support for Financial Institutions

50

 

Support for Vendors

50

Related Celent Research

51

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