Execution Management Systems: Complexity on the Rise

by Anshuman Jaswal, PhD, December 14, 2011
Product Trends/ Reviews
North America

Abstract

The execution management system industry has undergone rapid change in the last few years. Some players have exited the industry, possibly due to the rising competition and higher costs, but there has also been a rise in innovation and improvement in performance, as vendors add functionality for supporting algorithmic trading, transaction cost analysis, and compliance.

In a new report, Execution Management Systems: Complexity on the Rise, Celent looks at recent trends in the execution management system market and analyzes the offerings of leading EMS vendors globally. The market is tougher for vendors, but it has become increasingly difficult for trading firms as well. Due to the volatile environment and regulatory pressures, buy side firms are expecting much more from their EMS. This has been accompanied by the trend of a falling number of EMSs being used by a single firm as broker-neutrality becomes more important.

A critical factor for any buy side firm seeking an execution management system is integration and connectivity with a portfolio accounting and management system, the order management system, as well as other back office clearing and settlement systems.

“EMSs have become global and multiasset in nature. The pressure to offer enhanced functionality from the buy side means that there is more commoditization,” says Anshuman Jaswal, Celent Senior Analyst and author of the report. “At the same time, the rise in regulatory requirements has increased the compliance burden for EMS.”

This report looks at the offerings of the leading global EMS vendors. The overview section looks at the latest trends in the industry and how market players are trying to react to these changes. The report also compares some of the features of the leading EMS products, followed by a profile of each of those products, discussing their main characteristics.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Market Overview

6

Vendor Profiles

11

Bloomberg EMSX

12

ConvergEx RealTick

15

Fidessa Buy-side Workstation

18

FlexTrade Systems FlexTRADER

21

Goldman Sachs REDIPlus 11.0

24

InfoReach Trade Management System (TMS)

28

Instinet Newport 3.1 EMS

31

ITG Triton

34

Linedata Trader+

37

Morgan Stanley Passport

40

Neovest EMS

43

Portware

46

SunGard Valdi EMS

49

Tethys Exacta

52

TradingScreen TradeSmart

54

UBS Pinpoint

57

Conclusion

60

Leveraging Celent’s Expertise

61

 

Support for Financial Institutions

61

 

Support for Vendors

61

Related Celent Research

62

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