November 1, 2013

Vendor Built EMS Gain Traction

By

John D'Antona Jr.

Execution management systems are moving away from their bulge broker roots and are increasingly offered by various independent vendors. That's the notable finding in a recent Woodbine Associates report, "Execution Management Systems: Trends, Technology, Value, and Selection Criteria."

The consultancy targeted the research at buy and sellside firms that are considering implementing an EMS for the first time, those thinking about changing EMS providers, and investment managers or consultants looking to become familiar with issues, trends, and selection factors involved with execution management technology, according to Matt Samelson, principal at Woodbine.

Samelson told Traders Magazine that the movement of EMS away from large brokers was the most notable finding, as the report's database included only two EMSs from banks - JPMorgan and UBS. The other systems were from outside, non-broker providers. "Over the last few years, maybe due to the overall economy and the industry's downturn, there seems to be more of a demand for functionality but also an increasingly greater consideration to outsource a system," Samelson said. "To outsource, the economics make a compelling argument - no personnel or technological support needed."

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