Speaking at the FIX EMEA Trading Conference on 15 March 2018, one senior fixed income dealer said, “The proliferation of EMS vendors in this space is reflective of the fact that OMS vendors just haven’t kept up with client demand.”
Complaints about order management system performance still dog the fixed income markets, increasing the likelihood of in-house technology solutions.
Forty-three percent of buy-side firms are upgrading their order management systems (OMSs) and 10% are switching OMS providers, according to research by block-trading platform Liquidnet released in March 2018. The big issue for most – 76% of respondents – was a need for standardised connectivity.
Increased efficiency, particularly around low touch trading, is also pushing asset managers to look at execution management systems (EMSs). Liquidnet’s research found that 43% of small firms and 64% of large firms were investing in an EMS, and 94% of those were choosing to do so to manage liquidity.