The OMS has been covered here many times before (start with Fintech: What is an OMS? and follow the links). Today we're covering something lower level, that is typically lost in the noise around functionality. Specifically, position keeping and management.
One of the typical daily tasks for any OMS is to load in positions from an investment book of record (IBOR) system at the start of the working day. Why? Simple example - the OMS includes compliance functionality such as "percentage of portfolio in bonds must be less than 5%". In order to calculate this percentage the OMS needs to have accurate positions and prices. Prices can, for most asset classes, be pulled out from Bloomberg, Reuters, Markit and suchlike. Positions need to be mastered within the buy-side and distributed to the OMS.
So far, so normal.
The challenge is that the linkages between these systems are weak. Start of day batch file uploads? That's a 1980s technology solution that has no place in the modern world.
So, we posit this:
To build a modern OMS and EMS, you must first start with position keeping...
One of the typical daily tasks for any OMS is to load in positions from an investment book of record (IBOR) system at the start of the working day. Why? Simple example - the OMS includes compliance functionality such as "percentage of portfolio in bonds must be less than 5%". In order to calculate this percentage the OMS needs to have accurate positions and prices. Prices can, for most asset classes, be pulled out from Bloomberg, Reuters, Markit and suchlike. Positions need to be mastered within the buy-side and distributed to the OMS.
So far, so normal.
The challenge is that the linkages between these systems are weak. Start of day batch file uploads? That's a 1980s technology solution that has no place in the modern world.
So, we posit this:
To build a modern OMS and EMS, you must first start with position keeping...
Comments
Post a Comment