Access the latest news, analysis and trends impacting your business.
Explore our insights by topic:
Your sales rep submission has been received. One of our sales representatives will contact you soon.
Sell-side firms should embrace a flexible, phased approach.
Today’s sell-side firms are facing a wide range of economic and competitive pressures. Forced to contend with growing volumes, shrinking margins, client adoption of multi-asset strategies and technological innovation across the landscape, broker-dealers are increasingly finding that their existing order management systems (OMS) are not up to the task.
Why not? It boils down to a lack of modernity and flexibility. Legacy systems are often quite limited in terms of the depth and breadth of their functionality, depressing performance and requiring multiple platforms. They might be adequate for getting through each trading day, but they lack the capabilities required to truly deliver for clients and rapidly evolve a business.
Let’s zoom in on some of the key attributes of a successful OMS modernization and why they matter.
Many broker-dealers are aware they need these capabilities to optimally carry out their strategies and pursue their business goals, and that legacy systems cannot deliver them. But realizing that vision is far easier said than done. When it comes to technology as intricate and essential as an OMS, change can take a long time and be very costly. With inflation on the rise and dim economic projections for the months ahead, many executive teams are reluctant to approve this kind of wholesale change. What’s more, many legacy providers intentionally make it difficult for their clients to untether themselves, locking them into one-size-fits-all systems with expensive, bloated software and unneeded capabilities.
Broadridge OMS offers a better way. Our solution is multi-asset, multi-workflow and global, delivering all of the battle-tested technology, granular workflow capabilities and specialized support to trade virtually any asset class in any region – but these aren’t the only differences. By building our system on a modular software architecture based on independent components, we enable clients to take a phased approach to OMS transformation, prioritizing specific functions as appropriate.
Interoperability is becoming a business imperative, so our OMS integrates with our automation products and incorporates complementary principal workflows. This creates a unified workspace allowing traders to better seek liquidity for their clients by leveraging position management, FX hedging, market making, RFQs, smart order routing or utilizing systematic internalizes for matched trades.
This results in a solution that meets clients’ exact needs, helping them reach their goals with far more flexibility and precision than other vendors. They can focus on a single aspect of their workflow at initial implementation and easily add additional functionality down the line or integrate proprietary or third-party tools to supplement our system.
Every firm is unique, so there’s no single right way to leverage these capabilities. That said, many of our clients have taken a general path to ramp up incrementally over time, and thereby avoid overwhelming users with too much change at once. This approach is one way that broker-dealers can evolve their business at whatever pace they wish, gaining access to transformative technology while maintaining flexibility and ultimate control. Here are the steps:
There’s no need to undertake these processes in a strictly linear fashion. Many firms take the approach of migrating FIX, market connectivity and low-touch flow simultaneously, while others prefer a big-bang approach, which can be disruptive and intensive but ultimately accelerate timelines. The point is that the decision is in the client’s hands.
When it comes to OMS transformation – or any form of change management – this level of autonomy is invaluable. It means sell-side firms can pursue modernization and simplification in a way that best meets their needs, migrating onto a new solution while also consolidating across asset classes and workflows. This incremental approach unlocks the ability to solicit input, assess performance and make adjustments while closely managing risk and cost – and it’s only possible through a modular system like ours.
Interested in learning more about how Broadridge OMS can transform your sell-side business? Drop us a line.
Contact Us about what’s next for youContact Us