Boston, October 6, 2011 – A new report from Aite Group highlights key order management system (OMS) and execution management system (EMS) functionality sought by buy-side clients, and focuses on challenges faced by OMS and EMS vendors. Based on Aite Group interviews with clients of OMSs and EMSs—25 traditional asset management firms and hedge funds as well as leading brokers that play an important role in technology selection for their buy-side clients—the report presents key criteria for buy-side firms seeking to purchase OMS and EMS solutions.
While a buy-side firm might opt to implement a full-blown electronic trading platform for many different reasons, including regulatory compliance, expansion into multiple asset classes, and the need to access global markets, the buy-side is rarely satisfied with platform functionality. Trading-application vendors are under constant pressure to enhance functionality and identify next-generation needs. That this is occurring under the worst economic conditions in decades has led to substantial downward pressure on pricing. In short, today’s customers are demanding a lot more for a lot less.
“The incredibly competitive OMS and EMS markets are quickly becoming commoditized in certain areas,” says Sang Lee, managing partner with Aite Group and author of this report. “Customers are constantly clamoring for the latest and the greatest, and vendors can easily fall into the trap of pursuing functionality that would benefit only a small group of existing customers. Given the limited resources of each vendor, each must prioritize key functionality.”
This 19-page Impact Note contains eight figures. Clients of Aite Group's Institutional Securities & Investments service can download the report.