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Thursday, 5 December 2019

Why your OMS is not loved...

Today I want to focus on one narrow part of the buy-side OMS, the OMS as portfolio management tool. Specifically, order generation (OG)... 


We've covered the OMS here many times before - a brief reading list is:
OMS - functional deficiencies as a driver for change?
Fintech: What is an OMS?
How to get a better OMS
What's the difference between an EMS and an OMS? 
The buy-side OMS, an appreciation part one... 
The buy-side OMS, an appreciation part two...

If you have a look at those and then read this article it will make more sense...

Most of the systems out there in the marketplace, the "usual suspects" are really single asset class systems that try to be all things to everyone and fail miserably...

Let's look at a workflow...

PM of a Fixed Income fund receives a large inflow of cash.  It's late in the day so the cash is parked in a liquid derivative to ensure the fund meets invested/uninvested cash mandate restrictions.

Over the next few days the PM works on how she wants to reshape her portfolio to remain mandate compliant and shaped for good performance on a risk adjusted basis.

  • How does your OMS help your PM to carry out that task?
  • How does your OMS help your trade desk to implement the orders that the PM has created?
  • How does your OMS help your trade desk to implement the requirements that the PM has created?

The answers to those three questions explain why your users on the trading desk and portfolio management teams both are dissatisfied with your OMS.

And if you want to build out your capabilities to resolve these problems, get in touch...

Here's someone else who knows about OG...







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