Execution Management Systems: Complexity on the Rise
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].
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Table of Contents
Fidessa Buy-side Workstation
FlexTrade Systems FlexTRADER
Goldman Sachs REDIPlus 11.0
InfoReach Trade Management System (TMS)
Instinet Newport 3.1 EMS
Morgan Stanley Passport
SunGard Valdi EMS
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