SPECIAL REPORT 09

EMS/ OMS

Execution Management Systems / Order Management Systems

Providing Innovative Trading Tools to Navigate a Dynamic Market Structure

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Spirit
Endures
Business dynamics are center stage in the evolution of order-management systems (OMS) and execution-management systems (EMS). Distinctive yet overlapping roles have emerged for these technologies in recent years, and the contest has intensified as both camps vie to shape the future and position themselves for rosier economic times.
r. Mayiz Habbal of Celent says that EMS providers are savvier technically but OMS providers are in a better position in terms of resources, including money, relationships, and economies of scale. Senior vice president of Investments and Securities for the Boston-based consultancy, he notes that OMS providers, who tend to underestimate the value they deliver to clients, fear EMS providers will replace them. In our opinion, this is not going to happen anytime soon, he says. Even though they have the capability, theyre not really pushing with their marketing message to indicate that they are really going after the OMS world. He cites EMS providers belief that they cannot dislodge the OMS players at this momentspecifically within the traditional asset-management segmentas one reason. The greatest challenge EMS providers face, according to Habbal, is remaining independent. The likely acquirers: OMS providers in a preemptive move against EMS competition and to add capabilities into their

Entrepreneurial

offering for an end-toend solution. Habbal notes that these dynamics are very symptomatic of any software industry and that the situation in the IT world within securities and investments is basically standing still in terms of growth because theres a lot of hesitation in terms of Dr. Mayiz Habbal investment into any Celent new initiatives. The EMS/OMS world really is not any different than the others, he says. On another business front, Co-Founder and Managing Partner of Boston-based Aite Group Sang Lee raises questions about the broker-dealer model. There are a lot of conversations within the marketplace regarding how the broker-owned

Even though they have the capability, theyre not really pushing with their marketing message to indicate that they are really going after the OMS world.

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platformsin light of Weve certainly whats been happening seen OMS and EMS to the brokers themselveswill be able vendors sensing to maintain and offer a competitive product more opportunities, into the marketplace replicating what during these tough economic times, says theyve done in the Lee. The concept of U.S. market, and buying a third-party vendor and continuing trying to build a coreon that business model client base within while at the same time maintaining and other regions. trying to innovate more products and service Sang Lee into that particular Aite Group platform has been very difficult to manage. Industry rumblings on whether the brokers will have an appetite to maintain their platforms have surfaced. Or does it make sense for them to spin it out or sell it and focus on their core products and offerings? Lee asks. I havent seen anything definitive happen yet on those fronts. Certainly if things get worse, I think everyone, including the third-party vendors, would be in a horrible situation.

both EMS and OMS vendors to have a presence in European countries as well as Asian countries looking for new opportunities, says Lee. Weve certainly seen OMS and EMS vendors sensing more opportunities, replicating what theyve done in the U.S. market, and trying to build a core-client base within other regions, he explains. Habbal points to a problem for EMS providers, however: pricing. This business is becoming global, so we really need to have different kinds of models to apply to different parts of the world, he says. Unless they really think twice about how to change their pricing structures, theyre going to have difficulty growing, Habbal recommends switching to an ASP solution: It is a good option for them because it is going to reduce the cost that they operate under and then help them reduce the price.

Entrepreneurial Spirit

Wave of the Future

Habbal emphasizes self-service automation as the wave of the future. Its your capability of controlling your own fate, of determining what best execution is for you, he explains. This is much more of a self-service, automated, custom-made, mass customization solution kind of an approach. He says that when EMS providers entered into the equation, they were offering a self-service, automated way to get to the market and that the OMS providers correctly believe this is the wave of the future. Lee, too, highlights automation. You have to look at electronic trading as an efficiency tool, says Lee. The benefit is two-fold: improved operational efficiency by doing more business with fewer people and improved risk management, such as minimizing chances for errors through automated checks and balances that detect fatfinger order mistakes such as typing $100 a share for a stock worth $10 a share.

Habbal credits vendors entrepreneurial spirit with driving the industry forward. The people who spend the money are actually almost in a freezing mode, but the people who develop the solutions are not, he says. They have this entrepreneurial spirit. He explains that even in this environment, everybody has been carrying forward and pushing through the momentum of the revenues and cash they have been capturing over the past several years. Thats keeping them going in the momentum of focusing on the product and making it better, and developing it. But if the economic cycle takes a long time to come up again, then all of them are going to lose steam.

Differentiation

Global Connections

As international markets become increasingly interconnected, EMS and OMS providers are seeking clients beyond U.S. borders. Its typical now days for

Habbal advises firms to look beyond the vendors nearly identical marketing messages: You really need to scratch beyond the surface. What makes the real difference is the kind of company youre engaging with, their understanding of the business, and how their product is implemented. Its everything under the hood. From Lees perspective, customer service is an opportunity to differentiate. It is something that gets overlooked a lot, but its a category that comes up on top every time when you talk to clients, he explains. Whats the most important thing about your vendor? A lot of times its not about features or functionality. A lot of times you cant even tell the difference between one platform and another. What they care about is when they pick up the phone somebody answers it and get back to you.

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Greater Control over Trading Strategies and Execution

Charles River Investment Management System (Charles River IMS)

The Charles River Investment Management System (Charles River IMS) is a comprehensive multi-currency, cross-asset, front- and middle-ofce software suite. The systems open, standards-based service oriented architecture (SOA) ensures scalability and provides the functionality, exibility, connectivity and speed to efciently manage and execute orders for all asset classes, including: equities; FX; xed income; options; futures; and complex derivatives. Charles River IMS incorporates global, real-time electronic trading via FIX (Financial Information eXchange) via the Charles River Network, a broker-neutral and fullyintegrated nancial network that provides access to hundreds of global liquidity venues, including dark pools. Comprehensive FIX network services include: trade support; network, broker connectivity monitoring and management; testing and certication. The system provides complete trade-cycle support and features several modules to lower costs and risk while increasing operational efciencies. Charles River Manager for decision support, portfolio management and modeling Charles River Compliance for real-time pre-trade, post-execution and end-of-day compliance monitoring Charles River Trader for order management, electronic trading and execution management Charles River Post-Trade for centralized management of trade matching, conrmation, and settlement workow Charles River Performance for daily performance measurement, attribution and risk data

Charles River Anywhere for secure monitoring and management of Charles River IMS information via Web-enabled devices Charles River IMS meets buy-side clients growing demand for greater control over trade execution strategies and execution for their stock and list trades. The system contains embedded execution management (EMS) functionality and tight integration between modules delivers improved workow and audit controls compared to thirdparty EMS alternatives. The real-time, events-based trading blotter allows traders to efciently and easily manage and execute incoming orders from multiple sources. From a single desktop, traders can access easy-to-use advanced execution capabilities, such as: algorithmic trading, program trading, real-time data, integrated pre-, in- and post-trade transaction cost analysis (TCA), trade analytics, direct market access (DMA), automated order routing, and extensive customization options.

Algorithmic Trading
Access over 500 algorithms from over 40 algorithmic brokers Add new brokers and strategies seamlessly using exible infrastructure Build and customize user-dened algorithms directly within Charles River IMS

Program Trading
Create, trade, monitor and update programs Act on an entire program as easily as a single order Perform one-click execution via placement templates

Real-time Data
Integrated real-time datamarket depth, watch lists, time and sales data Interfaces with 14 data vendors

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Charles Rivers integrated tools, data and FIX connectivity ensure streamlined trade order management and execution via a single platform.
Tom Driscoll Vice President Sales and Marketing Charles River Development

Transaction Cost Analysis (TCA)

Access pre-, in- and post-trade TCA and analytics from 12 providers Integrate pre-trade TCA estimates directly into the trading blotter Navigate to other value-added content by linking blotter with embedded web pages

Automated Order Routing

One-stop point of control and support for execution and FIX-based electronic trading Advanced FIX auto-routing automates common trading workows

Extensive Customization Options

Congurable analytics to determine preferred execution paths Customizable and automated smart routing logic and criteria

Trade Analytics
Fixed Income Multi-dimensional cash ow forecast Enhanced curve construction window Support for volatility surfaces Import and use futures rates directly in curves Equity Program and single stock pre-trade analytics Real-time implementation shortfall monitoring Derivatives Templates and congurable defaults for swaps Embedded swap valuation and analytics Expanded DerivServ integration FX Real-time exposure calculations using forward rate curves Holiday calendar validation Sweep capabilities

About Charles River

Charles River Development is an award-winning provider of technology systems and services for 315 investment rms in the institutional, mutual fund, banking, hedge fund, wealth management, insurance and pension industries in over 30 countries ($21 trillion AUM/June 2009). Founded in 1984, Charles River maintains headquarters in Boston, primary ofces in London, Melbourne, New York, Paris, Singapore and Tokyo, and has a local presence in major nancial centers around the globe. Other offerings include: the Charles River Network; implementation services; and application management.

Charles River Development

Direct Market Access (DMA)

Integrated partnerships with 9 DMA providers Multi-broker DMA console DMA order routing directly from the blotter to execution venues

7 New England Executive Park Burlington, MA 01803 USA

Brian Basiliere, Sales Executive +1.781.238.0099 +1.781.238.0088 fax sales@crd.com

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OEMS Leads the Way

By Robin Strong, Fidessa LatentZero

Following a year in which the nancial markets have undergone dramatic changes, both expected and unexpected, the world of the buy-side trader has been radically transformed. The post-MiFID fragmentation of liquidity in the equity markets, combined with post-crunch demands for operational control have placed buy-side traders under a more intense level of scrutiny than ever before. But demands for transparency, along with the need to demonstrate the value of the trading desk and streamline expenditure, have pushed the integrated order and execution management system (OEMS), rst introduced to the market by LatentZero in 2006, to the fore once more. Minerva OEMS provides a complete full asset buy-side order management and trading environment. It includes real-time position keeping and P&L, portfolio analysis and drill down, order management workows, and pre and post trade investment compliance, and meets the demands of global regulators and directives. Support is provided for equities, xed income, money markets, foreign exchange, and listed and OTC (credit and equity) derivatives. By combining the full power of leading OMS and EMS solutions into a single system, and eliminating the challenges associated with staging orders between two applications, Minerva OEMS is now a well-established and proven solution. But it is currently attracting renewed levels of interest because it specically addresses a number of the key issues generated by changing market conditions. The rst of these is cost, and as capital expenditure becomes harder to justify, a number of rms are reassessing their current set-up. Conventional logic dictates that a buy-side rm will have a single OMS, unless exceptional circumstances dictate otherwise, while using multiple EMS platforms to gain better analytics, tools and improved access to liquidity. However, the costs of maintaining, integrating and managing diverse platforms

have started to outweigh the benets. Certainly an OMS is a reasonably expensive core technology platform for any asset manager. But the hidden costs attached to free EMS platforms in terms of commissions and connectivity fees have caused this model to lose its lustre. The functionality of the OEMS has been designed to eliminate the need for multiple EMSs. It can be deployed globally from a central server, with the same real-time performance in all locations, which, combined with full asset class functionality, obviates the need for assetspecic or location-specic EMSs. Consequently, it is available at negligible incremental capital cost, and incurs fewer ongoing operational costs as a result of its reduced requirement for support and maintenance. The multiple-EMS model also leads to additional costs when it comes to maintaining visibility across the entire workow, at a time when maintaining accurate audit trails has become a priority. Creating a single audit trail to demonstrate that a rm has exercised effective operational controls or followed very specic directives with regard to best execution is extremely difcult to achieve across multiple or fragmented systems. Even when an audit trail has been produced, quantitative analysis is extremely difcult, and it is almost impossible to conduct any form of transaction cost analysis. Minerva OEMS offers full transactional history and audit trail of all user activity to meet the client order handling, record keeping and transaction reconstitution requirements of RegNMS and MiFID and other major regulations. In doing so it creates an opportunity to assess the performance of both external brokers as well as the asset managers own traders. Since traders are increasingly being called on to demonstrate that they add value to the organisation, this level of analysis enables them to demonstrate performance with a single quantitative measure.

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Demands for transparency, along with the need to demonstrate the value of the trading desk and streamline expenditure, have pushed the OEMS to the fore.
Robin Strong director of market strategy Fidessa LatentZero

Tight process controls and permission management within the OEMS, together with integrated investment compliance greatly reduces the risk of investment or trading errors. Comprehensive client mandate and international regulatory restrictions are supported and checked throughout the investment process, ensuring portfolios stay within guidelines at all times. Order aggregation and portfolio/strategy allocation policies can be dened, and there is no loss of compliance functionality or rules set up in the integrated OEMS, (compared to when orders are staged between two platforms), thereby minimising functional and operational risk. In an environment in which counterparty risk management is paramount, it ensures that restricted counterparty and other account characteristics, which typically do not hold well in the transition across FIX, are maintained. Its full asset class functionality goes beyond the straightforward equity trading functionality, and provides comprehensive support for market-making price discovery required by xed income, foreign exchange and OTC derivatives in a single platform. This in turn enables contingent orders to be executed as one basket across different asset classes. The OEMS also offers single-click, low-latency connectivity from the blotter to more than 365 brokers, broker algorithms and global DMA destinations, as well as connectivity to all major alternative trading systems. The single set of connections reduces costs for brokers, and although this may not be of paramount importance to the larger players, it prevents smaller niche brokers being priced out of the electronic trading space and thus compromising the ability to deliver best execution. In addition, since more than 85 per cent of tier one brokers use (parent company) Fidessas sell-side systems, Minerva OEMS contributes towards valuable end-to-end visibility of the workow. The OEMS also provides connectivity

to specialist alternative trading systems, that may not be available through broker-supplied EMSs. Finally, the OEMS facilitates and consolidates pre and post trade analytics, and provides pre-trade order size analysis and transaction cost estimates, as well as managing IOIs, trade history and news to assist traders in deriving the optimum trading strategy for an order or list of orders. Level 1 and level 2 data is integrated from more than 115 global exchanges, and calculated columns with denable heat maps enable traders to set up their own analytics and alertsa capability that is signicantly impaired when managed across multiple systems. Underpinning the development of the OEMS is Fidessa LatentZeros unique technology architecture that supports high levels of throughput with no loss of performance. That architecture, previously only available to the sell-side, has been the foundation of Fidessa LatentZeros solutions from their very inception and enables them to develop and scale their applications in line with changing demand. As traditional database-centric OMS vendors follow Fidessa LatentZero into the integrated OEMS space, they will face challenges if their technology has not been designed to handle todays high transaction and market data volumes. Minerva OEMS is used by small specialist managers and hedge funds, through to the worlds largest institutional buy-side rms.
Fidessa LatentZero
London Head Ofce One Old Jewry London EC2R 8DN T+44 (0) 20 7105 1000 Boston Head Ofce 160 Federal Street, 16th Floor Boston MA 02110 T+44 617 235 1000 info@latentzero.com www.latentzero.com

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The Eze OMSsimplifying the OMS-EMS workow with a single-system approach

By Rob Keller, CFA, Managing Director, Global Product Management

The Eze OMS is a global, multi-asset class, multi-strategy order management system that leverages a real-time, event-driven service-oriented architecture to automate the investment process from idea generation through settlement. In a single platform, the Eze OMS delivers the robust functionality of an OMS, with the market data and speed of execution of an EMS. The Eze OMSs four seamlessly integrated components provide functionality to support portfolio management, compliance, trading and operations: Eze Portfolio Management offers advanced analytics and decision support tools: portfolio modeling; rebalancing; what-if analysis; real-time intraday and historical P&L; and liquidity exposure and analysis. Eze Compliance enables rm-wide pre- and posttrade portfolio and trade compliance: ad-hoc, pre- and post-trade compliance checks; monitoring and alerting on any data element including exposure, benchmark or benecial ownership; and libraries of hundreds of industry-standard rules. Eze Trading goes beyond enhanced FIX integration, delivering trade order and execution management in a single platform: exible, real-time trade blotter with embedded EMS; intuitive, asset-specic workows; order generation, allocation, and routing; and FIX connectivity; and automated electronic security locate tools. Eze Operations offers a comprehensive set of tools for managing all of your post-trade operational needs: third-party integration for pricing, trading, and security data; vendor-neutral integration with clearing and settlement destinations; commission management; and real-time system monitoring and alerting.

OMS and EMS functionality in one core application. It maximizes efciency by reducing the number of clicks (and windows) from order entry to execution, with access to nearly 500 sell-side destinations, 550+ multi-asset algos from 45+ brokers, and DMA to 50+ global markets, all in a single-screen. The Eze OMS delivers DMA to 95% of the worlds liquidity, and supports 15,000+ connections between Eze OMS clients and the sell side for electronically trading international and domestic equities, options, futures, swaps, and FX. A users Level I and II market data, Time & Sales, TCA, Market Watch, and Charts are seamlessly integrated with modeling and analytics, portfolio and trade compliance, liquidity analysis, and even commission management. For easy access to dark and natural liquidity from the blotter, the Eze OMS integrates with crossing engines and dark pools and supports simultaneous blotter scrapes from all the leading platforms with no added latency. With the Eze OMS, an order is fully managed from idea generation through settlement in one place - one blotter, a single point of trade entry, a consistent look-and-feel, and no more swivel chair effect.

Bringing OMS and EMS together for a streamlined workow

In todays market environment, with increased volatility, heightened scrutiny from investors and growing regulatory requirements, its more important than ever to incorporate safeguards into the investment process. In a single, consistent interface, the Eze OMS provides fast and efcient order entry, with the safety net of pre-, intra- and post-trade portfolio and trade compliance, exposure and position calculations, extensive portfolio modeling and analytics, and a complete Audit Trail that tracks the life of the order. A single order generated by the PM can be included in benchmark models, checked against compliance and

No more swivel chairmanage your investment process in a single system

The Eze OMS with embedded EMS functionality is a proven, market-tested, single-system solution. The Eze OMS streamlines the investment process, converging

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The Eze OMS streamlines the investment process, converging OMS and EMS functionality in one core application.
Rob Keller CFA, Managing Director, Global Product Management

exposure alerts; and sent seamlessly to the trader; the trader can view real-time P&L and exposure on the order, and execute it with a single click. Traders can electronically send locate requests to borrowers, run compliance, and include those locates in P&L and exposure calculations. All user actions and locate quotes are captured in the Audit Trail for documentation. Throughout the day, trade information is seamlessly sent downstream to third-parties and external systems. With order and execution management combined in one platform, the Eze OMS offers ultimate exibility for how data is viewed and managed. The Eze OMSs buildyour-own workroom framework allows users to create customized workrooms to simultaneously view different types of information from multiple places in the system, all in a single screen. Liquidity Management workrooms can be created to view the order blotter, real-time performance totals, and liquidity exposure, alongside trade montage, Level I and II market data, Charts, Market Watch, and IOIs.

Key enhancements on the horizon:

Enhanced exibility for customizing workows and workspaces for different asset classes including the ability to create multiple blotters, to congure order entry workows, and dene advanced analytics and pricing models. Extended exibility for API integrations including integration with data vendor APIs Enhanced electronic trading workows including userdened rules for automated order execution; spread trading, multi-leg and pairs trading tools; and contextsensitive IOIs. Data Warehouse functionality for archiving and centralizing security information, historical pricing, transactions, and position data for detailed reporting.

About ConvergExs Eze Castle Software

Ezes award-winning order management system, the Eze OMS, leverages a real-time open architecture to streamline the investment cycle for all asset classesfrom idea generation through settlement. The Eze OMS provides functionality to support Portfolio Management, Compliance, Trading, and Operations. With nearly 400 clients worldwide and ofces in Boston, New York, Stamford CT, San Francisco, London, and Hong Kong, Eze is one of the leading providers of order management systems. ConvergEx is a premier provider of investment technology solutions and global agency brokerage services.
Eze Castle Software, LLC

A technology partner, not just a vendor

The Eze OMS is coupled with a high-touch service model. We dene ourselves as a technology partner, not just a vendor. We work closely with our clients to consult them on technology, and partner with them to develop cutting-edge functionality ahead of market demand. We offer 24-hour global support and monitoring of all your applications, interfaces, and FIX connections, at no extra cost, ensuring you are fully supported at all times.

The Future of the Eze OMS

Our exible, scalable architecture enables us to deliver enhancements across all components of our product (Portfolio Management, Compliance, Trading and Operations) at a rapid pace. Were committed to offering our clients cutting-edge, innovative tools that simplify and enhance their investment process.

12 Farnsworth Street, 6th Floor Boston, MA 02210 +1 646-346-1140 sales@ezecastlesoftware.com www.bnyconvergex.com

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SunGards Global Access Helps Firms Expand Revenue without Expanding Overhead

Cost containment, xed-cost reduction, variable-cost reduction, and economies of scale these are among the selling points of SunGards Global Trading Solution*, which can help rms Ralston Roberts drive revenue and capitalize on new SVP product , opportunities in todays challenging management, economic environment. SunGard Trading Widely known for its various point solutions, SunGard has put them all together in a Global Trading Solution to create new opportunities for the large institutional sell-side broker-dealers, wholesales, and regional retail brokerdealers that comprise its customer base. The compilation of services, among other things, enables rms to rapidly transform business concepts into revenue-generating business lines by leapfrogging the typical cumbersome implementation steps. Whether rms are aiming to trade new asset classes or cross international borders, SunGard helps them do so quickly and easily says Ralston Roberts, SVP product , management, SunGard Trading. Leveraging technology already active in Europe and Asia, the Global Trading Solution is now available in the United States. Roberts discusses how leveraging this full offering helps rms source more revenue, reduce operating costs, and stay compliant as markets change.

costs. The solution that were putting forward helps customers enter into new markets and new businesses easily without increasing their costs. And also helps them achieve and maintain compliance with regulatory rules across the different lines. For example, we have Brazilian broker dealer customers that want to provide their buyside customers with access to Latin American and US cash equity and derivatives markets. They white label our buy-side EMS to their customers desktops, they use our trading tools to trade high-touch order ow, and they have SunGard centralized pre- and post-trade risk monitoring and position reporting tools to manage risk across all markets and asset classes.

How do your services translate into increased revenue for your customers?
Once rms decide to enter into a new business, they want to implement quickly so they dont miss the opportunity. We help them monetize their ideas a lot faster. A typical six-month project can be reduced to a month or less. For example, we had an existing US broker-dealer customer who wanted to trade in Mexico. Through our OMS, connectivity and broker network, they could start trading within a week. Theres a unique opportunity right now in the U.S. marketplace for rms that havent been in the global trading space to get into it. Traditionally a handful of brokers facilitated that business, but buy-side customers are reallocating commission dollarsa result of the credit crunch and other changes that have taken place in recent years. That leaves an opportunity for certain types of rms to capture more business. The problem is that signicant up-front costs exist. We provide an easy way for small to medium broker-dealers to do it cost-effectively. Now they can facilitate that business by leveraging our applications, either from a direct market access (DMA) perspective to their clients or from a hightouch perspective at their desk.

With the economy and brokerage community in massive transition, what opportunities can SunGard provide?
The SunGard Global Trading Solution extends our ability to help customers grow revenues by expanding their current asset class coverage while minimizing costs and maintaining regulatory compliance. This is accomplished, in part, by consolidating multiple and disparate technology platforms. One of our customers greatest difculties is entering into new markets and business lines while controlling

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I believe without SunGard and their technology and customer support, we wouldnt be where we are today. Weve grown by leaps and bounds in the last ve years and SunGard has been right there with us helping us grow.
Rick Petrone EVPDirector of Capital Markets Domestic Securities Inc.

Another difculty is execution. When expanding into new markets where a rm isnt a member or doesnt have expertise, how are they going to facilitate that business? Through SunGards brokers and broker network, rms can establish multi market global relationships that can help get them execute customer ow across assets and globally.

What, if anything, distinguishes this service from other offerings?

SunGard has a particularly broad and deep range of services. Our Global Trading Solution includes a multiasset order management system with built in execution management capabilities. It also has a sponsored broker model that gives our customers access to brokers and buy-side rms worldwide, including emerging markets such as Brazil and India. We facilitate orders in cash equities, options, and futures to more than 150 exchanges around the world. SunGard also provides advanced execution, smart-order routing, clearing and settlement, market data and market data/news terminals. Our technology platform enables us to handle all this in a very timely and cost efcient manner. Once rms become a customer, we can essentially ip a switch to turn on new services. By contracting with us for multiple services, rms eliminate and condense such time-consuming tasks as systems implementation, identifying and implementing proper risk controls, installation at client sites, building back-ofce clearing interfaces and reporting on positions by customer, trader and ofce across the globe and multiple asset classes. Once rms begin working with us and have implemented a part of the solution, expansion is easy.

and potential improved performance. Firms benet from economies of scale with us because its the same support people, its the same operations people, its the same data center footprint, and the same connectivity. Expanding current products and services with SunGard reduces your total expense for adding additional businesses, which helps drive protability amid margin compression. As a specic example, many of our broker-dealer customers use our OMS and our institutional trading compliance tool together. Now, they have one data store for orders, trades, and tick data rather than multiple stores, reducing technology costs and, more importantly, improving the comprehensiveness and responsiveness of their compliance function.

Everyone claims outstanding customer service. What makes yours stand out?
Weve emphasized customer service in recent years, dedicating resources to assure our responsiveness to questions and issues meet customer expectations and making sure we answer all questions quickly and visit our customers regularly to hear their wants and needs rsthand. Our continual objective is to deliver support and service that ensures customers are up-to-date on the functionality available to them, and have a voice in future functionality. Our customer-centric approach benets not only customers but also SunGard. Our deeper relationships with customers help us develop products that are even more effective at meeting their needs. Customer retention is higher than ever, and existing customers are expanding their relationship with us.
SunGard Trading
545 Washington Boulevard, 7th Floor Jersey City, NJ 07310 Ralston.Roberts@sungard.com 201.499.5994
* SunGards Global Trading Solution includes but is not limited to some services offered by GL, Brass, Protegent and Assent Some U.S. brokerage products and services offered by Assent LLC, member FINRA/SIPC.

How do you save your customers money?

A typical trade in US markets touches 7 disparate systems, adding to the cost and latency of each trade. We can help rms reduce the number of touch points in the trade life cycle, resulting in a lower blended cost per trade

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The Transaction Enabled Workstation

In todays fragmented market place, having the ability to recognize opportunities before they become fully priced, quickly identify sources of liquidity and promptly act on that information by instantly communicating with counterparties is essential. Traders must have all the tools necessary to ensure they are not missing market indicators or trends. It is also apparent that these tools must be consolidated into a single offering that provides traders with a full view of the nancial picture while making optimal use of limited desktop real estate.

integrated within our desktops and creates an offering that is more than just an EMS; it provides a transaction enabled workstation. A cockpit from which the user can seek, nd and execute against the liquidity that resides in the market.

Simplied Workow
Thomson Reuters offers one complete workow solution that includes comprehensive news, rich analytics, full price discovery and order routing with back ofce output capabilities, all within a single desktop. RTEx simplies our clients trading, allowing them to route orders to multiple brokers and receive consolidated execution reports via the comprehensive blotter. The displays can be tailored to meet users needs and the ability to click to trade from any price or direction in the Order Book creates a smooth order entry workow. AutEx, the worlds premier order indication and advertised trade service, provides viewable Smart and Natural IOIs in the RTEx Blotter or via the AutEx Inbox. By doubleclicking the streaming IOIs, order tickets are easily prepopulated for electronic routing. The use of RTEx goes beyond the equity markets by featuring spread trading tools for commodity instruments and Request for Quote (RFQ) capabilities. The tools enable users to submit exchange listed spread orders and easily view the leg constituents in the blotter. With the RFQ capabilities they can send a request for a price and quantity of a security to a specic broker, which offers them greater exibility in their trading workow. Communication is another vital part of a traders workow, and Thomson Reuters makes it easy for RTEx users to

With the broadening responsibilities that traders face in the current nancial environment, it is essential that they have the tools to easily nd liquidity and quickly react to developing events. A simplied workow is essential for todays active trader.
Thomson Reuters takes these needs very seriously. A great deal of time and effort has been spent dening and rening a platform that can meet the needs of an active trader. Using the depth and breadth of our industry leading news and content along with powerful charting and trading tools, Thomson Reuters provides a wealth of information to make a trading decision and then route an order for execution. Thomson Reuters execution management systemReuters Trading for Exchanges (RTEx)is fully

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Thomson Reuters provides access to the broadest pool of liquidity from around the globe, including the fast-growing emerging markets.
Tom Venezia SVPGlobal Head of Transactions, ETI Thomson Reuters

instantly communicate with their counterparties. With the Reuters Messaging (RM) icon integrated in RTEx, RM is at their ngertips, enabling them to easily keep in touch with counterparties using secure messages that are archived for compliance purposes.

maximum order ow from users of Thomson Reuters desktop products and leading order management systems worldwide. With a single FIX connection, the need to manage multiple point-to-point connections is eliminated.

Trade Execution Quality

The trade execution process is growing increasingly complex and the costs associated with each transaction are becoming more intricate. To be competitive and to be compliant with regulatory obligations, it is essential to monitor and optimize execution quality. Thomson Reuters Global TCA is a fully hosted, web-based best execution analytics and compliance reporting platform. It supports detailed trade level exception reporting as well as aggregate best execution analysis of brokers, counterparties, traders, individual trading algorithms, and other parameters of choice. The tool can automatically pull trading activity from RTEx into Global TCA at the end of each trading day, offering an out-of-the-box TCA solution for RTEx users.

About Thomson Reuters

Thomson Reuters is a global information company providing intelligent information relevant to professionals in the nancial services, media and corporate markets. Our information is trusted across front, middle and back ofces, fuelling decision making and automating business processes around the globe. We have a reputation for speed, accuracy and freedom from bias. We provide nancial institutions with tools designed to help them distribute and manage the everincreasing volumes of market data, while managing risk and compliance obligations. Our electronic trading services connect nancial communities, helping them gain access to the best prices and trade efciently and effectively.
Thomson Reuters

Global Liquidity
As a result of the connectivity between the Thomson Reuters Order Routing network and the Tradeweb Routing Network, Thomson Reuters enables market participants to access the broadest pool of global liquidity and to trade within the largest community in the world. Participants of this global hub-and-spoke network span all developed trading markets as well as the fastest growing emerging markets, including Latin America and the Middle East. Orders can be sent to any broker on the service with whom a trading relationship exists. For executing broker-dealers, a single FIX connection to the network provides the reach necessary to attract

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Contact Person:

Tom Venezia SVP Global Head of Transactions, ETI +1 646 223 7742 thomas.venezia@thomsonreuters.com

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Are You Sure Your Execution Management System Is Keeping Up?

A Revolution Is Occurring In Electronic Trading Technology And Traders With Access To A Reference EMS Will Have A Competitive Edge

What a difference a year can make.

A year ago the electronic equity industry was generally still predicting modest double digit growth in low touch electronic trading revenues, the ongoing decline in the sales trading function and equity trading continuing to be dominated by the bulge bracket brokers. Since then we have seen unprecedented market volatility, dramatic contractions in trading volumes, portfolio turnover and commissions, plus a wholesale reorganisation of the sell-side. Against this backdrop the sell-side community is working hard to broaden the range of products it delivers electronically, in an integrated manner to clients to capture diversied revenue streams, whilst at the same time considering the most cost effective way to provide users access to these products. The focus for brokers is on their core competency of execution, Smart Order Routing (SOR) and value added trading services and not necessarily the software business, which for brokers, has never looked quite so unattractive. The buy-side has seen portfolio values and performance fall signicantly and, particularly in Europe, have had to ensure they understand and seek best-execution for their clients. And this in an environment that is seeing smaller trading sizes having to chase execution and liquidity across increasingly fragmented markets, ranging across primary exchanges, crossing networks, Multi-Lateral Trading Facilities, plus individual and linked dark broker pools. Keeping your head above water and navigating the execution currents in the equity markets has never been so challenging. As is always the casein challenging times it is those who really understand and build on their core strengths, whilst choosing the right partners to help make their business more efcient and effective, that will emerge stronger. Brokers are responding to the new environment by seeking to ensure their best products, the latest algorithms,

Transaction Cost Analysis tools, cross asset execution capabilities and prime services are fully and seamlessly integrated into the Execution Management System (EMS), in an easy to use, functionally rich manner. This provides brokers with a platform to work with clients to provide the best execution available, regardless of the stock, size or complexity of the order. At the same time institutions are taking greater direct control over their trading decisions and global execution capabilities. Why? Because by using an EMS to its full potential traders realise they can not only increase the efciency around their workow, but more importantly have a tool that actively contributes to their trading performance. As the buy-side desktop consolidates, traders are demanding access to the latest execution services across the multiple brokers they trade with, in a single platform which is customisable to their workow requirements and trading style. The good news is that tomorrow is here todayneutral, multi broker, multi-asset class electronic trading access, all in a single desktop.

Is my EMS multi-broker and broker neutral how do I know?

In todays arena traders want access to the trading partners of their choice, across the spectrum of full service brokers, agency only and regional brokers in an un-conicted manner. Multi-broker does not always mean broker neutral. Is your EMS fully open and connected through its own connections directly and uniquely to each broker globally on its network? Are you satised you can direct order ow to where you want it to go, without interference or obligation? That is multi-broker and broker neutral. And, to help get to where you need to be you should seek clear answers from your EMS partner on the following:

How can I maximise execution opportunities with my EMS?

Can I congure a single button to execute a stock

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A Supplement to Traders Magazine Produced by SourceMedia Custom Solutions

by using an EMS to its full potential traders realise they have a tool that actively contributes to their trading performance.
Rustam Lam Director of Marketing

using an algorithmic strategy with my chosen parameters? Can I spit an order and send this simultaneously, using various algorithmic strategies across multiple brokers, for execution? Do I have access to dark pools and SOR via the brokers I trade with? Can I take market data out of my EMS and use it in my trading model and also automate the trading orders back into the EMS? What advanced list trading features are available, to easily modify open lists, benchmark performance and group orders across a variety of attributes?

the highest quality trading experience to institutional traders and the intermediaries that provide execution services, proprietary research and transactional tools? In summary, the future is here today for traders. A global, multi-broker EMS, providing access to the latest execution services and products, from multiple brokers, across multiple asset classes in a single easy to use and fully customisable platform. If your current EMS provider falls short in some of the areas discussed above, it is time to consider making a change to a proven best of breed technology with a passion and understanding of the trading environment.

Is my EMS compatible with my OMS?

Does my EMS provide seamless integration with my OMS? Can we stage orders across the organisationfrom the portfolio managers to the traders, with real-time execution lls returned to both seamlessly? For multi-broker and multi-asset class requirements does the EMS offer the exibility to pre-designate broker routes across asset classes?

About RealTick
RealTick, created by Townsend Analytics, is the electronic trading industrys premier directaccess research and trading software. RealTick delivers real-time market data, news and analytics; sophisticated trading tools; unrivaled access to exchanges and ECNs; and risk management tools to institutions, broker-dealers and individual investors. RealTicks advanced technical design is supported by state-of-the-art data centers and a redundant network for market data and orders.
Company details:

Is my EMS really a multi-asset capable EMS?

Does it display market liquidity and trading tickets in the appropriate asset specic way for easy trading? Can it manage contingent and conditional trades across asset classesautomatically executing an equity option trade to hedge a cash equity trade? As the complexity of trading and connections across market participants increases, it is important to understand the kind of service model that sits behind the EMS. Does the EMS provider have a history in leading and managing trading technology and systems and really understand the dedicated service level that this requiresis it in their DNA? Do they manage their own infrastructure, data centres, product development, client support desks and account management teamsall focused on delivering

New York Townsend Analytics 780 3rd Avenue, 44th Floor New York, NY 10017 +1 212 679 9000

London Townsend Analytics Level 7 One Broadgate London, EC2M 2QS UK +44 (0) 20 7786 5070 www.realtick.com sales@realtick.com

2009 Townsend Analytics, Ltd. All rights reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.

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