A report released by SunGard and TABB Group that reveals both large and small investment banks and brokers are sacrificing order management system (OMS) functionality in exchange for aggressive cost cutting.
The report comes from 111 responses from a broad range of brokerage firms and investment banks across North America, Europe and Asia.
Key findings of the report included; at the forefront for all sell-side firms is the desire to consolidate OMS functionality across all asset classes; current OMS functionality for futures, foreign exchange and fixed income exhibited a significant decline in satisfaction when compared to that of cash equities; for a large number of small firms, current OMS functionality is focused only on equity execution, among others.
Alexander Tabb, partner in TABB Group, said: “To continue proving their worth to the buy side, sell-side firms must recognize the increasingly urgent need for deployment of OMS technology capable of more than simple execution of individual assets.”
“Today’s more complex environment requires the technological infrastructure for global multi-asset trading, compliance management, and the ability to assess client profitability.”
Bob Santella, president of SunGard’s brokerage business, said: “Sell-side firms play a valuable role in helping the buy side make sense of market structure complexities and increased regulatory changes.”
"But these firms must have the necessary infrastructure to provide greater levels of services that span multiple asset classes and trading strategies, as well as a more flexible OMS architecture through a single point of execution and analysis tools for measuring performance and profitability.”
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