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In the order/execution management system (OEMS) marketplace, firms have historically been reluctant to switch or make wholesale changes to their legacy platforms — even if the technology was out-of-date. Usually, there were three reasons for this reluctance to change:
Customization: In most cases the legacy platform will have been customized over many years (often by those no longer at the firm).
Deep Integration: The platform has been fully integrated into all the firm’s dependent systems, often in a very complex infrastructure.
Knowledge: Users are comfortable knowing all the system workarounds and are familiar with its many features and functions.
While this reluctance to change a legacy OEMS was understandable, advances in trading technology over the last few years combined with either a dissatisfaction with their current offering, or discontinuation of the current platform, is forcing many firms to consider changing their systems and assess the different vendors in the space.
Of course, once the decision has been made to make the change, the assessment process can be a daunting one. However, done correctly, it is a unique opportunity for a firm to have a positive impact on their business for many years to come with the result being a technology partner who will not only refresh their technology stack, but ensure they can keep pace with their workflow changes well into the future.
At Itiviti, a Broadridge business, we are unique in our forward-looking approach and ongoing investment in our OEMS. While other firms have cut back in this area, we continue to invest in innovative new features to greatly enhance the platform.
Itiviti’s OEMS is the only solution in the market that can simultaneously handle low-touch trading, program trading, high-touch trading and middle office workflows combined with low latency gateways and AI-enhanced processes for onboarding, testing and certification of clients, brokers, and venues. The platform also supports multi-asset, high-volume trading throughout the order lifecycle, all while meeting the ever-changing global regulatory requirements.
Specifically, firms can use the OEMS to connect to more than 200 trading venues, including all major exchanges, brokers and SI’s, combining lit and dark market access with IOI & crossing detection to source the best liquidity. Itiviti’s Order Routing Networks provide access to over 800 buy-side firms and an expanding network of more than 700 brokers. In addition, the time to onboard clients is significantly reduced enabling them to start capturing orders without delay using Itiviti’s AI-powered onboarding and testing tools.
Improvements for the Here and Now
While legacy vendors remain static in improving their systems, Itiviti has invested significantly in the OEMS with innovative, modern technology upgrades in the following key areas:
High-Touch and Low-Touch Trading
For high touch trading, key features have been significantly improved, such as composites, flow automation, position management, and trade reporting. Low touch performances, latency, as well as low touch order management flexibility have also been significantly strengthened. And the alerting system has been completely reconfigured to provide a customized, flexible level of notification of any event required by the user.
Last year Itiviti released a new Program Trading module that enables large sell-side institutions to electronically trade a basket of stocks simultaneously for index arbitrage, portfolio restructuring, or outright buy/sell interests.
An Improved Middle Office
Since technology stack consolidation is a key driver for many client decisions, Itiviti expanded the platform’s cross-asset Middle Office functionality to handle derivatives, while also improving the system’s automation, flexibility, and exception handling.
Automated Client Onboarding with AI
The partnership between Itiviti and Imandra, the world leader in cloud-scale automated reasoning, has helped transform a historically manual and time-consuming client certification process through automation. By integrating Imandra’s Core Reasoning engine into the platform’s FIX certification and onboarding process, counterparties can now be certified in hours rather than days, drastically reducing the time-to-market for handsfree onboarding and certification.
Trading Cryptocurrencies and Crypto Derivatives
Itiviti partners with crypto expert EQONEX to provide institutional investors with an integrated platform for digital assets trading.
Looking to the Future
Itiviti will continue to invest in its OEMS by further integrating the system with our automated trading technology to enhance workflow automation, thus helping clients to increase efficiency and cost effectiveness.
Itiviti Acquisition by Broadridge Financial Solutions
Of course, 2021 also introduced an exciting new chapter for our OEMS — and Itiviti in general — with our acquisition by Broadridge Financial Solutions. With Itiviti’s focus on front-office trade order and execution management systems, FIX connectivity and network offerings, Itiviti is highly complementary to Broadridge’s industry-leading post-trade product suite and other capital markets capabilities. We believe the combination of these capabilities will drive significant value to clients by enabling them to streamline their front-to-back technology stacks, increase efficiencies, reduce risk, and optimize balance sheet utilization across equities, fixed income, exchange-traded derivatives, and other asset classes. •
About the Author
Dan Smalley is fascinated with the intersection of technology and global trading. Over the last 25 years he has worked during many exciting times, starting at LIFFE with the evolution of electronic trading as pit trading began its death spiral. In the early days Dan worked at the largest Global Brokerage firms (MF Global, Newedge) as the technology marched forward. Dan joined Fidessa in 2005 to build their Derivatives business; 15 years later it was the largest global F&O OMS/EMS provider in the world with over $80m in annual revenue. Through relocation from London to New York and now Chicago, Dan has a unique perspective on the global industry and enjoys building long term relationships to enable growth opportunities.
Itiviti provides nearly 2,000 financial institutions worldwide with flexible, cross-asset trading solutions that cover the full trade lifecycle. Through its commitment to technology innovation, relentless pursuit of workflow efficiency and an entrepreneurial culture, Itiviti is disrupting the industry with highly-scalable solutions that deliver unprecedented cost savings for clients.
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