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Erik Hoel
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Will The Bitcoin Bubble Pop Or Will It Envelop Us All?

Guest contributor Erik Hoel asks the question whether the worst is over for bitcoin holders, or still yet to come, what is yet to come? And why.

Traders Poll

In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

17%

Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

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May 6, 2013

Debate on EMS/ OMS Merger

By John D'Antona Jr.

One trading system or two?

So far, there's no clear direction as to whether buyside trading desks should keep management and execution of their orders in two separate systems or unify them in a single one.

The lack of consensus is a core finding of a recent Tabb Group report authored by Cheyenne Morgan. The study, "Buy-Side OMS & EMS: A Market Snapshot," found that almost half of the U.S. asset managers and hedge funds polled prefer to have separate order and execution management systems, despite growing overlap in functionality between the two.

"There is no real consensus out there on one system," said Morgan, an analyst for Tabb Group.

Tabb surveyed 52 buysiders.

Morgan told Traders Magazine that respondents who wanted the unified system tend to be smaller firms that don't have a great deal of order flow and therefore don't require lightning-fast EMS.

Bigger firms, however, want to keep the OMS separate, as they need to maintain dedicated and complex audit trail records and have a large compliance need.

The notion of combining the two management systems originated a few years ago as institutional investors' technology budgets shrank due to the ongoing decline in trading volumes and profits.


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