Profiling the Seven Major Vendors of the Buy-Side Order Management Market

Published by: TowerGroup

Published: Jun. 23, 2008 - 25 Pages

Table of Contents

Report Coverage

Introducing the Featured OMS Providers

Criteria for Evaluating OMS Providers

Comparing the Major OMS Vendors

VENDOR REVIEWS

Advent Software

Bloomberg

Charles River Development

Eze Castle Software (BNY ConvergEx Group)

Fidessa LatentZero

Investment Technology Group

Linedata Services Asset Management

Summary

Abstract

TowerGroup Take-Aways

• Rather than choosing an order management system (OMS) based on functionality, price, and slick sales demos, tomorrow's asset managers will look at implementation and service feedback, long-term vision and product plans, and the vendor's business model.
• OMS vendors have narrowed the gaps in core functionality among their applications and now offer a very good set of base order blotter, portfolio management, and compliance functionality.
• Rather than allocating scarce product management resources to further improve the order blotter, OMS vendors are enhancing areas with more potential for differentiation: portfolio modeling, post-trade support, or execution management functionality.
• Most of the large OMS vendors have redesigned their core technology platform to address the challenges of scalability, reliability, and performance that have plagued these systems.
• TowerGroup has found widespread disparity in the nature, extent, and level of derivatives support among the OMS vendors profiled in this Research Note.

Report Coverage As part of our comprehensive focus on the investment management business, TowerGroup has been analyzing the buy-side order management system (OMS) market for more than 10 years. Much has changed over that time. In 1998, the biggest names in the OMS market were Merrin Financial (later acquired by Macgregor Financial), LongView (now called Linedata Services Asset Management), Advent Software, Charles River Development, Thomson Financial, and SunGard's Decalog. Most of these firms and their OMS products still exist in some form or another, but some have fallen off the radar and others have gained much greater mindshare. This market still attracts tremendous interest from the asset management industry, the buy-side OMS application having become (arguably) the most important application to the asset manager.

This TowerGroup Research Note profiles seven major vendors in the buy-side OMS market, discussing each vendor's history, current functionality, focus, and future product management initiatives. Also discussed are the criteria used for evaluation, which reflect what clients are increasingly seeking in an OMS vendor. The following vendors are profiled (their OMS products are named in parentheses): Advent Software (Moxy); Bloomberg (Portfolio Order Management System (POMS); Charles River Development, or CRD (Charles River Investment Management System (Charles River IMS)), Eze Castle Software (Eze OMS); Fidessa LatentZero (Minerva OEMS); Investment Technology Group, or ITG (Macgregor XIP); and Linedata Services (LongView Trading System). TowerGroup deems these seven vendors market leaders because of their current mindshare and market share in the global asset management market, penetration of the middle and large segments of asset managers, and potential to be major players in the next two to four years. Several other vendors that play in the OMS market are briefly mentioned at the end of the Research Note. Many companies in the latter category are heroes from yesteryear that fell by the wayside, while others are new entrants that have yet to prove themselves in the OMS space.

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