Buy Side Order Management Systems: Providing More for Less
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.