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Joanna Fields
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Navigating Cybersecurity on a Stretch of "Regulatory Rapids"

In this shared commentary, Aplomb Strategies writes that when considering a firm’s governance structure, a holistic approach makes the most sense.

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December 14, 2007

Linedata's OMS Meets Goldman's REDIPlus EMS

By James Ramage

The EMS-OMS convergence story continues. Buyside traders using Linedata's LongView order management system and Goldman Sachs' REDIPlus execution management system could be getting a break. Work done by the two technology providers to synchronize the two systems means traders will not have to cancel and re-key orders when going from the OMS to the EMS and vice versa; it will be done dynamically. This is expected to be completed by the fourth quarter of this year.

The development essentially makes the OMS the "quarterback" of trading, says Linedata's Gavin Little-Gill, senior vice president at the firm, "allowing the OMS and EMS to communicate better." The arrangement between the two firms comes as broker-dealers such as ITG and BNY ConvergEx are merging their OMSs with their respective EMSs into a single product.

"The benefit in having an order reside in two different places simultaneously is that you have access to all that liquidity that's out there," Little-Gill says.

Linedata's plan is to work with other EMSs after it completes its integration with REDIPlus, Little-Gill says. There is also strong demand from clients for similar connectivity with other EMSs.

The firm decided to work with Goldman Sachs first because REDIPlus had the greatest penetration: About 40 percent of its client base has it installed, he says. The other reason is "Goldman was willing to work with us," Little-Gill says.