Mostly… fixed income and cross product eTrading

July 17, 2008

The Future of OMS

Filed under: etrading, FIX, OMS / EMS — holky @ 8:35 am

TowerGroup says Spending on OMS will grow in dollar terms and compare favourably with other buyside spending in terms of (apparent) priority. In terms of product, the research indicates that growth in the OMS sector is being driven by three key areas, and in addition to Weallth Management functionality there is;

— Emerging Markets – With both the US and UK OMS markets saturated, international markets – specifically continental Europe, the Middle East, Asia including China and India, and South America – represent the strongest growth opportunities for OMS providers.

With FPL also putting a flashlight onto Emerging Markets too (here) – I’d hope that any drive made by the OMS/EMS vendors will include electronic trading from the off, building the e-trading workflows for the local markets at the same time as the functions to cope with the internal order management and regulatory nuances for the region/market in question. We shall see.

— Derivatives – Supporting derivatives is a critical requirement for an OMS. Derivatives represent a unique opportunity for OMS vendors to extend their franchise beyond traditional OMS functions and into new territory, including valuation, pricing, and risk management.

Here Charles River and Tradeweb are in the news announcing the launch of a fully-integrated, end-to-end solution for post-trade processing of OTC Derivatives; IRS (U.S. Dollar, Euro, and Sterling), CDS (CDX, iTraxx, single names, and tranches), which is clearly really well timed and with definite potential as a workflow enhancer (and while the press release understandably does not mention trades executed in non-Tradeweb electronic venues – I presume these would be fed in the same way as voice trades so this proposition could cope with all of the client’s trades in these products?)

One thing that the TW/CRD press release did also mention, is about point-to-point broker connections…

In addition, a new Direct Dealer Inventory feed in Version 8.2 enables buy-side traders to establish electronic point-to-point broker connections and receive available fixed income inventory directly into Charles River IMS – electronically matching orders and helping traders successfully execute on inventory opportunities.

…which doesn’t specifically mention electronic execution via these connections, but does put another foundation in place for a single platform.

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2 Comments »

  1. Interesting to read this. Many say that Charles River is unable to manage IRS properly in particular broken dates & forward starting dates. Also they have difficulty with CDS which given the vanilla coverage of TradeWeb should be just about OK for clients!

    Comment by jake — August 12, 2008 @ 10:35 am

  2. […] Coding the Market thinks Caplin in the answer to SDP. Maybe Mostly should consider Caplin for an OMS? […]

    Pingback by Catching up after vacation | Tales from a Trading Desk — August 1, 2013 @ 9:35 pm


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