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Fixed Income Trading: New venues

A simple question came up recently in a conversation – how many new Fixed Income trading venues are there?  I could not think of anywhere th...

Saturday, 7 May 2016

OMS and EMS: market update

Information from various meetings, market intelligence and some commentary on the buy-side OMS and EMS market...
Aladdin
Their website states:
"Powered by more than 1,000 developers...a data and analytics "factory" with 800+ professionals focused on creating and quality controlling data..."
 
That's a lot of salaries to pay, huge cost base and therefore a very high price tag.

EMSX has been adopted by many buy-sides as an entry point into the EMS space.  In some cases buy-sides are now replacing EMSX with a standalone EMS.

Charles River Development
The v9 release seems to be gathering some momentum.  Buy-sides are being offered a "SaaS" model of sorts but this looks more like hosting than a true SaaS model.  Always rumours about potential sale.  Most recently Thomson Reuters were linked.

They have a zero deployment model that fits right in with a modern architecture pattern.  Not seen the product used yet. More research needed.

Eze Software
Integration of the diverse technologies of Eze, Real-Tick and Tradar is complete, functional enhancement is the current goal.  If they can build out FX, Fixed Income and program trading they will have a very good product.
 
Fidessa
The buy-side offering is a solid performer but has not been picking up sizeable new business recently. 
 
The firm is doing very well in the buy-side EMS space at the moment.  A quote from a senior person at a direct competitor firm "2016 is Flextrade's year".
Acquisitions in Europe and a desire to take on the established players but with a focus on the sell-side. A difficult market and one that will be hard to crack.
 
ITG and their Triton product face a difficult future which is not related to Triton, rather to "Project Omega".  A sad story, especially for the many dedicated ITG folks I have met and worked with over the years who have really pushed the agency brokerage and technology provider model.
Coverage: Equities (single stock, DMA, Algo, PT), F&O (limited)

Not on the radar much at the moment.  Not heard of any new business in a long time.
 
Seems like an interesting product - more research needed.
[Update 13/05/2016 - spoke with the CTO/CEO - it's all SaaS and a real open source culture within the firm.  When I get time I will add more detail on this firm.]
 
September 2015 saw Factset acquire Portware for $265m in cash. That's a pretty hefty fee for a business in a very competitive market.
Coverage: Equities (single stock, DMA, Algo, PT), FX spot, F&O
 
Tethys
Their Execta platform is a good looking piece of software.  A privately held company with a seemingly US centric client-list.
Coverage: Equities (single stock, DMA, Algo, PT), F&O
 
Thinkfolio
Thinkfolio is a firm I've admired for their structure and leadership.  They seem to be going great guns at the moment with a lot of new hire roles being advertised on linkedin
 
Court cases involving TCV must adversely impact the market perception of the firm.  The buy-side product has a reasonable spread of functionality but has been attached to a high price tag which counts against them.
 
Trading Technologies
They have performed well due to strong protection of their IP portfolio.  A quick online search for "trading technologies lawsuit" brings about 145,000 hits.  So best not to say much about this firm.




 

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