Execution management systems have gained the confidence of buyside traders and may overtake the traditional order management systems that were once the mainstay of a trader’s desk.
These were the findings of a survey of 258 buyside traders around the world that ws conducted by market research firm Greenwich Associates.
[Today’s OMS is doing more than ever before.]
In a new report, entitled Move Over, Neighbor: EMS Establishes Residency on the Desktop, 70 percent of the 258 global buyside traders surveyed reported using third-party execution management systems. Also in the survey, 61 percent of the respondents stated that they prefer a comprehensive OMS/EMS platform.
Despite this preference for integrated systems, nearly nine out of 10 traders say they have no plans to change EMS providers in the next year-a finding that reflects both a level of comfort with existing functionality and the continued lack of a true comprehensive OMS/EMS solution. Currently, traders say they maintain the same EMS for an average of seven years, according to a press statement from greenwich associates.
Traditional order management systems certainly provide the baseline capabilities to route orders via brokers algorithms but lack the additional controls and color that give those active equities traders an edge, saysRichard Johnson, vice president in the Greenwich Associates Market Structure and Technology Group. For that, buy-side traders are turning to EMS providers.
As global equity markets become more complex, buyside traders are expressing a strong desire for integrated systems for order and execution management. To date, however, the industry has not yet come through with a singular solution to meet that demand, according to Greenwich Associates.
