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Sellside OMSs Get Ready

Addressing Compliance and Regulatory Changes

Traders Magazine, July 2007

Nina Mehta

After priming for Regulation NMS for at least a year, sellside order management systems are in the initial stages of enabling their broker-dealer customers to be Reg NMS-compliant and effective in this new era. For brokers, the new era started on July 9. "Reg NMS raises the bar in terms of what brokers expect of their OMS," says Chris Kelley, an executive vice president at Fidessa, a large sellside OMS vendor. "These new functions are critical in the restructured environment." The Securities and Exchange Commission's Reg NMS requires broker-dealers to avoid trading through protected quotes. At the same time, liquidity has fragmented across dozens of trading venues. The quote-protection obligation, coupled with brokers' best-execution duty, has made finding and aggregating liquidity more complex.

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