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Next-Generation OEMS: The Future of Trade Management

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7 July 2014

Abstract

We are at the threshold of integration of OMS and EMS becoming a reality, in the form of an order and execution management system. These new systems will also combine risk functionality with the trade management system, since the risk and compliance requirements of market participants are increasing at present.

In the report Next Generation OEMS: The Future of Trade Management, Celent looks at the emergence of systems that which combine the functionality of order management and execution management systems. After several false starts, such systems are becoming a reality as firms try to continue their trading across fewer platforms and in a more streamlined fashion that allows for easier regulatory compliance.

Smaller firms are more likely to opt for “out of the box” cloud offerings that allow them to test and implement quickly and with few resources, while larger firms are expected to use the option of more complex, widget-based platforms that would allow for tailor-made solutions encompassing portfolio, order, execution, and risk management functionality.

The next phase of this development (Build It Yourself OEMS) would allow firms to choose the individual features of the system that they would like to employ. Then the vendor would be able to produce this OEMS from the ground up, with the deployment model chosen by the client.

“The ability to quickly create and deploy new OEMS solutions means that market participants have much more flexibility than ever before,” says Dr. Anshuman Jaswal, Senior Analyst with Celent’s Securities & Investments Group and author of the report. “The main advantage would be the ease of use and lower cost of operation of a multiasset and modular system that will allow market participants to meet their regulatory requirements.”

This report begins with a look at the latest trends in the order and execution management platforms space. This is followed by a discussion of the current state of the industry and how it has evolved over the last few years. Finally, we consider some of the new and exciting products that are being developed in the market, and the level of adoption we expect.