Order Management Systems

Order management systems (OMS) have been around for more than 20 years and play a key role in most investment managers’ current and target operating models. In today’s environment of lower fees, greater regulation, and unprecedented uncertainty, firms are analyzing their systems and solutions and looking for ways to optimize their operating models for greater efficiency and scale.

Integrate and Innovate

OMS vendors are responding to asset manager demands and find themselves in an escalating technological arms race, building features to expand the scope of their OMS into areas normally served by specialty systems and moving their products closer to a front-to-back solution.

Big Enough or Too Big? 

The more functionality an OMS provides, the more deeply ingrained or stickier the product is in an organization, and the more difficult it is to replace. The questions some investment managers are asking is whether it is acceptable to become so dependent on a sole provider ─ and does that dependence create too much vendor risk? Do the benefits of using a single integrated system outweigh the risks?

In this report, we explore industry trends and examine the functionality and services that OMS vendors provide and are including in their strategic roadmaps. We offer insight into the OMS vendor landscape and provide individual vendor evaluations for core OMS functionality. We also describe extended functionality capabilities for IBOR, performance, and risk.

 

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