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1/23

Order Management Systems /

Execution Management Systems

A Supplement to Traders Magazine,

Produced by SourceMedias Custom Publishing Group

TRADING STRATEGIES, INTEGRATION

AND IMPLEMENTATION


2/23

EMS and OMSInnovation AboundsManagement systems of both the e and o variety are becoming

indispensable tools in traders ever-intensifying quest for best execution.

This flourishing sectors rapid evolution is both driving and responding to

market dynamics, and its various business models present unprecedented

opportunities for traders.

Confusion erupted when EMS and OMS providers began delivering

similar functionality in their platforms. However, that confusion is giving

way to understanding the wide array of choices available. Traders are finding

that, despite growing similarities and the emergence of fully integratedplatforms, important distinctions between EMS and OMS remain.

TRADING STRATEGIES, INTEGRATION AND IMPLEMENTATION

Contents 74 Advanced Financial Applications, Inc.76 Bloomberg Execution Management System

78 Charles River Development

80 Eze Castle Software LLC

82 Fidessa LatentZero

84 Investment Technology Group, Inc.

86 InfoReach, Inc.

88 Portware LLC90 Townsend Analytics

92 UBS Direct Execution


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A Supplement to Traders Magazine, Produced by SourceMedias Custom Publishing Group

WWilliam Butterfield, TowerGroup seniorresearch associate, points to eachsystems original goals as an enduring

key differentiator. Order management

systems, a paper-blotter replacement

to track trading activity and orders, are

primarily compliance-based. Execution

management systems, which originated

with day trading and rapidly migratedto electronic institutional trading, are

focused on real-time trading, real-time

market data, and analytics.

Both types of systems have grown far

beyond their roots. From my perspective,

the choices that are available are out-

standing right now, says Robert Hegarty,

TowerGroup managing director, Securities

& Investment and Insurance.

Today, independent EMS vendors and

broker-owned EMS platforms are engaged

in cooperative competition, propellinginnovation to new heights. Typical sys-

tems include a trading blotter, connectivity,

multiple destinations, and real-time data.

Buyside and sellside OMSs are add-

ing EMS-like functionality. In turn, EMSs will

continue to innovate, predicts Hegarty. The

EMS providers are in a constant state of

reinventing themselves and I think that

theyll actually do things to try to widen the

gap between what they do and what the

order management systems do, he says.

Many firms employ multiple EMSsand an OMS. Firms tendency to use an

EMS or an OMS largely depends on the

complexity of the strategy employed and

the frequency of trading, according to a

January Aite Group research report. As

the frequency of trading increases and

the per-share expected profit goes down,

there is an increase in the importance of

customized functionality.

Aite co-founder and managing partner

Sang Lee says while its not clear that a

fully integrated EMS and OMS is the right

solution for most people, The clients

have already spoken to a certain degree

saying, were interested in having a single

platform, a single screen that will help

us manage our trading needs. Thats whyweve seen a lot of effort on the part of

broker-dealers to develop a single-dealer

platform and at the same time, adding a

lot of new functionality and connectivity.

Butterfield offers a different point

of view: TowerGroup sees increasing

convergence between the EMS and OMS

in peripheral functionality but does not

expect them to merge into one integrated

system because the platforms core

offerings serve different purposes and

constituents.Ultimately, clients will determine the

winning models. With an abundance of

choices, they must truly understand their

own unique requirements,say the experts,

and then determine which solutions best

match their trading strategy. Hegarty also

advises firms to look beyond each ven-

dors technology and functionality to the

stability of the company and soundness

of its strategic plan.

Aites Lee sees traders becoming more

educated and more sophisticated interms of what kind of tools and services

they need to achieve best execution. The

firm estimates overall spending on EMS

and OMS applications totaled up to about

$1 billion in 2006 and that it will steadily

increase each year, with a projected $1.2

billion OMS/EMS tech spend by 2010.

Most of the clients are actually look-

ing for a platform that can essentially

grow with them, says Lee. You see so

much emphasis and development effort

coming from some broker-dealer EMSs

and certainly OMSs who are able to

support multiple a set classes across

different regions, and different interna-

tional markets, so that as the client base

becomes more sophisticated, theyre ableto support that growth and make sure

that clients themselves wont have to add

another screen just to get another asset

class or another international market

added to their overall scope.

Other factors weigh heavily on decisions

as well. Were seeing more of a

proliferation of dark pools in the U.S., in

North America, and also going forward in

Europe with multi-lateral trading facilities,

says Hegarty. There will be more pockets

of liquidity besides just at the exchanges.Having connectivity to all of these venues

will be of great importance for the EMS

and OMS providers.

Lee points to the chronic demand for

measuring performance. It certainly is

another product area thats fairly tightly

integrated with EMS and OMS to try to

figure out, now that weve been given

a lot of these sophisticated tools and

services, how do we know that were

going to get the right type of performance.

So tying that back to performancemeasurement with TCA tools and so on is

incredibly important, he says.

Another important issue going forward,

says Butterfield: Integration between the

OMS and the EMS, making sure that data

thats entered into one system is repli-

cated and available in the other system

in real time.

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One of the great debates revolves around the issue of

integrating and migrating trades from front-end execution to

back-end clearing and settlement to manage trades

throughout the trading process. Most software providers have

taken a siloed approach to the process, focusing on one

aspect of trading, for example, either an execution management

system (EMS) or an order management system (OMS). This is

an approach based more in technological capability than on

trader need. In this way, the great EMS/OMS debate is irrelevant

because it focuses more on the technology than on the underlying

forces that drive trading behaviour. The real issue underlying the

EMS/OMS debate is not which system is the best but which one

addresses workflow seamlessly without commingling different

applications.

Technology Needs to Adapt to Trading, Not the Reverse

AFAs approach to technology recognizes this dynamic intrade workflow and accounts for trader requirements. Our

approach has been to build our technology based on how a

trade happens from trade execution to allocation to interactivity

with third parties. This approach automates the entire trade

workflow (execution and processing) and seamlessly allows the

user to access all three capabilities via a single, web-enabled

application.

Another key issue behind the EMS/OMS debate is neutrality

and independence. Neutrality is the ability to access multiple

brokers, as needed and appropriate, and it means giving the

users the ability to control their trades both from trade execution

and trade processing perspectives. This neutrality is tied to the

need for vendor independence. As a firm not held by a broker

or bank, AFA acts as a strategic vendor with clients, using our

client-focused technology to build their businesses.

Historically, the marketplace has pigeonholed vendors into

either the EMS or OMS category. This is because most vendors

have focused their entire business on one specific aspect of

trade workflow as opposed to the entire trade workflow. Given

that there is an increasing user demand for an OMS that can

also deliver EMS functionality (and vice versa), vendors are

now trying to patch together a combined solution, and brokers

with captive EMS solutions are trying to work with various OMS

vendors. However, this integrating of different applications may

serve the needs of the suppliers but is unlikely to be as efficient

as one built as a combined EMS/OMS from its inception.

Who We Are and What We Do: Simplifying Trade WorkflowAdvanced Financial Applications, Inc. provides a suite of

Integrated Order Processing (IOP) solutions to institutions

and hedge funds, either directly or through broker--dealer

sponsorship. AFAs flagship product, IMPACT Pro simplifies

trade execution and order management.

IMPACT Pro is an integrated, truly broker-neutral technology

solution that helps clients achieve a seamless trading

environment by taking a trade from execution to settlement in a

single entry. More importantly, IMPACT Pro provides maximum

trading flexibility while streamlining trade workflow, resulting in

lower operating costs for users.

AFAs Perspective on theEMS vs. OMS DebateProfiabilityAnd Performance In Todays Trading Environment

In todays environment, profitability and performance continue to be the fundamental drivers for traders. Underlying this

profitability and performance is the ability to access liquidity and execute against it in a cost-effective way. Technology has

proven itself, over the last decade, to be a key element in a traders ability to access, execute and manage trades. How a trader

decides on which technology to use for order execution and order management is increasingly complex. The industry has seen

numerous technology solutions, beginning with the automation of the back office some15 years ago, and the development of

order management systems in the 1990s. As tradersneeds have come to be more precise, technology firms have responded,

resulting in trade execution tools (e.g., algorithms, transaction cost analyses, etc.) and order management systems (e.g. trade

allocations). In addition, advances in technology (from enterprise software to hosted software) have left many users with

legacy systems which continuously need to be either integrated or updated.


Order Management Systems / Execution Management Systems

74


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Advanced Financial Applications, Inc. is a financial

services technology company that provides a suite

of Integrated Order Processing (IOP) solutions to

buy and sell-side institutions. AFA helps hedge funds,

asset management firms, broker dealers and family

offices grow their businesses by creating and delivering

trading solutions to streamline trade workflow,

thus resulting in lower operating costs. For more

information, visit AFA online at www.afapp.com.

Advanced Financial Applications, Inc.

111 Broadway, Ste 405

New York, NY 10006

www.afapp.com

Nilesh Nanavati

President

[email protected]

212-286-1248

Key Features of AFAs Product Suite:

US Equities and equity options

Ability to access multiple brokers from a broker neutral platform

List trading

Charting, IOIs and commission management

Access to multiple broker algorithms

Trade allocations and compliance reporting

Automated post-trade reporting to multiple prime brokers

Position management and import/export of positions with

multiple prime brokers.

Key Benefits of AFAs IMPACT Pro:

Minimum set-up and installation costs FIX-enabled,

fully-hosted application

Maximum flexibility and cost-savings through neutral

multi-broker access

Operating efficiency through seamless trade allocation,

middle office reporting, and position management

Best practice through compliance tools that offer

increased transparency. Multi-prime broker connectivity

for greater autonomy.

No switching costs and lock-ins with service providers Ability to receive orders from other execution

management systems.

Who We Serve

Mid-tier broker dealers find that their ability to compete

with bulge bracket firms is hampered by their inability to offer

value-added trading technology solutions to traditional money

managers and hedge funds. By offering these firms the ability

to provide a differentiated solution (which integrates trade work

flow), AFA helps to level the playing field.

At the same time, EMS/OMS needs vary by market segment.

Small funds typically are captive to the EMS provided by their

prime brokers. As the fund grows to a mid-size fund (less

than $1 billion AUM), it requires a flexible, neutral application

that can allow trading and prime connectivity with multiple

brokers. Larger funds ($1 billion plus in AUM) either create

something proprietary or invest a significant amount of money

in purchasing a high-end EMS/OMS solution. The fact that

AFAs technology solution is built on trade workflow rather than

specific functionality (such as that related to front, middle or

back office processes) allows it to service all three segments.

Conclusion

The question of where EMS/OMS systems are headed

ultimately depends on understanding trade workflow and being

able to bring efficiency (through technology) at each function

within that workflow. Rather than focusing on EMS/OMS, the

industry is better served by focusing on solutions that promote

integrated trade order processing while bringing trade workflow

efficiency.


Nilesh NanavatiPresident

Pat LynchCEO

75


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The Bloomberg Execution Management System (Bloomberg

EMS), launched in 2005, provides a multi-broker global equity

and fixed-income trading tool that combines data, trade-blotter

analytics and extensive order routing options to Bloomberg users

via EMS on the BLOOMBERG PROFESSIONAL service, at

no additional cost to users.

Bloomberg EMS buy-side traders can create their own custom

trading blotters as well as use the wealth of real-time pre-trade,

working and post-trade analytics that can be custom designed,orrely on the vast library of pre-defined benchmarks. The platform

also provides a real-time sorting and filtering option that enables

traders to identify orders that need special handling versus the

selected benchmarks. Orders can be routed to more than 1,000

broker-dealer destinations globally.

Pre-Trade Decision Support

The extensive analytic capabilities of the BLOOMBERG

PROFESSIONAL service are expanded within the Bloomberg EMS

service. Bloomberg EMS users see critical market data, % of

ADV, VWAP calculations, Natural IOIs, estimated market impact,

deviation from benchmarks and custom risk metrics within

their EMS blotters. Running the broker ranking application via

RANK on the BLOOMBERG PROFESSIONAL service, users

can view the top brokers by volume in each stock, over custom

time frames.

Broker neutrality reaches beyond routing destinations.

Bloomberg provides pre-trade cost estimates from premier

broker-dealer providers and allows users to integrate the dealer

estimates clients find useful into their workflow. These cost

estimates allow users a new way of identifying tough orders; a

way that far surpasses conventional methods such as ADV.

Additionally Bloomberg provides IOI Live to enable anonymous

authentication of Natural IOI size and price to brokers preferred

customers. IOI Live caters to the buy-side demand for natural

block liquidity and the increasing need to pay preferred brokers.

Bloomberg EMS augments this process by matching critical IOI

content with the traders orders on their EMS blotter. A buy-side

firm can utilize a filter to see all IOIs or Naturals, only from the

dealers they trust. Further filters can be utilized to highlight the

content on high market impact orders or high % ADV orders allvia Bloomberg EMS.

Global Order Handling and Routing

Bloomberg EMS provides connectivity to over 37 algorithmic

providers and enables brokers to deploy algorithms overnight.

Users can be enabled for algorithms intraday, providing a quick

turnaround to their client base. Recent enhancements support

more algorithmic fields per strategy and more strategies


Bloomberg ExecutionManagement System

The wish list of a buy-side trader seems never-ending. Buy-side traders want: a feature set which includes broker neutral access

to the most broker, algorithmic and dark pool destinations available; global support on a multi-asset, multi-currency platform;

pre-trade cost estimates from leading dealers,working trade analytics, benchmark comparisons in real-time and robust post-trade

TCA reports for management reporting and regulatory requirements; to fulfill their best execution requirements without conflict,

with no additional cost to the buy-side and no per customer connectionor trading fees for any participant which ultimately affects

commissions and fund performance.

A Supplement to Traders Magazine, Produced by SourceMedias Custom Publishing Group76


7/23

per provider. Bloomberg is an active participant in future

development in this space through involvment with the FIX

Protocols Algorithmic Trading Working Group.

Bloomberg provides breadth, speed, reliability and pricing

in Bloomberg EMS, bringing together buy-side and sell-side

organizations globally without per connection fees or commissions.

With over 1,500 FIX and non-FIX broker-dealer and algorithmic

destinations available to EMS, participation is robust in Asia,

Europe and the Americas. Bloomberg is committed to continued

enhancements to handle and route additional asset classes, as

well as integration and connectivity to dark pools and Alternative

Trading Systems.

Order Management Systems and Workflow Integration

Bloomberg EMS seamlessly integrates with 3rd party and

Proprietary Order Management Systems. Traders typically stage

orders from their OMS to the Bloomberg EMS using the widely

popular FIX protocol. Orders are received via FIX, scrutinized

and sent to the destination of choice. Broker executions are

passed to the OMS, automating the process of reaching liquidity.

This straight thorough processing greatly reduces errors and

simplifies trader workflow.These capabilities also exist for non-FIX brokers, and have

proven significantly beneficial for emerging markets, Latin

America and parts of Asia. Bloomberg EMS has powerful and

flexible import/export functionality. Single orders and baskets

can be imported to Bloomberg EMS from MS Excel or text

files either through manual drag-and-drop or on an automated

basis. Order, trade and audit trail information can be exported

on a manual or automated basis out of Bloomberg EMS to be

disseminated to back-office and prime brokerage systems.

Post-Trade Analytics and Transaction Cost Analysis

Bloomberg Transaction Cost Analysis (BTCA) provides

post-trade transaction cost analysis to analyze broker, trader,

market and sector performance, for all transactions through

Bloomberg EMS. BTCA combines execution data in Bloomberg

EMS with Bloombergs industry standard market data to not

only provide statistics on the trading process, but also provide

the forensic capability to identify underlying circumstances

behind the trade.

With multiple benchmarks, trading desk aggregation,grouping,

sorting and filtering, reports are fully customizable. Presentation

quality reports are available to fund boards, portfolio managers

and compliance officers. Detail can be viewed on the order, route

and execution level. BTCA is a complete solution for any firm

that wants to measure and improve their transaction costs.

Bloomberg EMS was awarded Best Execution Management

System by Waters Magazine for the second successive year in

2007. With the largest community of users, Bloomberg EMS

is a global, broker neutral, stand alone Execution Management

System as well as a core component of the Bloomberg

POMS platform. Bloomberg EMS is accessible to Bloomberg

users via EMS on the BLOOMBERG PROFESSIONAL service;

leveraging all the analytics, routing network, integration and

providing post-trade TCA via BTCA on the BLOOMBERG

PROFESSIONAL service.

2007 Bloomberg LP. All rights reserved.


Bloomberg is a leading financial information services,

news and media company. Bloomberg provides

real-time news, financial and market data, pricing,

trading, news and communications tools in a single

integrated package to customers around the world

through the BLOOMBERG PROFESSIONAL service

and media services. Bloombergs media servicesinclude the global BLOOMBERG NEWS service, the

24-hour business and financial BLOOMBERGTELEVISION

service,BLOOMBERG RADIO services, BLOOMBERG

MARKETS magazine and BLOOMBERG PRESS books

for investment professionals.

www.bloomberg.com

Don Carey Kevin Young

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Charles River IMS provides complete trade-cycle support and

features several modules to lower costs and risk while increasing

operational efficiencies, including:

Charles River Manager for decision support, portfolio

management and modeling

Charles River Trader for order management and

electronic trading

Charles River Compliance for real-time pre-trade,

post-execution and end-of-day compliance monitoring

Charles River Post-Trade for centralized management of

trade matching, confirmation, and settlement workflow

Charles River TBA Mortgage for automated and

streamlined delivery and settlement of MBS pools

Charles River Anywhere for secure monitoring and

management of Charles River IMS information via any

Web-enabled device

Charles River Execution Management System (Charles

River EMS) for management and execution of orders.

The heart of Charles River EMS capabilities is the real-time,

user-configurable trading blotter that allows traders to efficiently

and easily manage and execute orders. Users have access to

advanced and easy-to-use functionalities such as user-defined

algorithms, profiles, strategies, real-time market data, analytics,

risk, news and other context sensitive information from a

single desktop.

Charles River EMS provides all of the tools buy-side traders

need to manage their single stock and list trading processes,

including algorithmic trading, pre- and post-trade transaction

cost analysis (TCA), direct market access (DMA), automated

order routing, access to real-time pricing and market depth and

program trading.

Algorithmic Trading

Easily integrate custom developed sell-side algorithms

into the Charles River IMS without the need for

additional software upgrades.

Access over 200 equity algorithms provided by 30+

algorithmic brokers.

Pre- and Post-Trade Transaction Cost Analysis (TCA)

Charles River has integrated partnerships with 4 pre-trade

and 4 post-trade TCA providers.

Integrate pre- and post-trade TCA directly into the order

blotter, making data immediately accessible for analysis

and routing decisions.

Easily navigate to additional value-added content by

simply clicking on an individual order within the

trading blotter.

Direct Market Access (DMA)

Charles River has integrated partnerships with

9 DMA providers.

Integrated DMA to ECNS, ATSs, dark pools and

broker algorithms.


Stand Alone or Integrated

The Charles River Investment Management System (Charles River IMS) is a comprehensive front- and middle-office software

suite for all asset classes. It combines state-of-the-art and industry standard technologies to ensure an open, flexible system that

is scalable, functionally rich, and easy-to-use and integrate.

Charles River IMS incorporates real-time electronic trading via FIX through the secure, private Charles River Network based on

the BT Radianz global financial extranet. Comprehensive FIX Network Service includes: FIX trade support; FIX network and

software management; FIX testing and certification; and connectivity management



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Automated Order Routing

Route orders automatically by leveraging Charles

Rivers advanced FIX auto-routing that evaluates the

characteristics of an order as it is being sent and routes

with appropriate instructions to the broker of choice.

Charles River IMS is completely broker independent,

allowing Charles River to route to hundreds of brokers for

Algorithmic, DMA, Program or Care orders.

Leverage a one-stop point of control and support for EMS

and FIX. Route orders to more than 1,200 global broker-

dealer destinations that are on the Charles River Network,

or to other third-party broker-dealers algorithmic tradingofferings or block trading desks.

Direct orders to the broker of choice via a single click.

Real-time Pricing and Market Depth

Integrated market data via partnerships with Reuters,

Bloomberg and 12 real-time data vendors.

Monitor real-time pricing directly within the order blotter

or leverage data to track implementation shortfall of a

particular order or program.

Program Trading

Create, trade, monitor and update programs.

Act on an entire program as easily as a single order.

Future Releases

Watch Windows for tracking an individual portfolio or

individual securities for which no orders currently exist.

Trade interactively with complete market depth.

Enhanced EMS capabilities for building and customizing

user-defined algorithms directly within Charles River IMS.

Extended profiles and strategies, market data integration,

DMA and smart order routing capabilities.


Charles River EMS is not EMS light it

is a global multi-asset class system that is

truly broker independent. Clients have the

flexibility to leverage Charles River EMS as

a tightly-integrated module of Charles River

IMS for end-to-end functionality and STP,or as a stand-alone product.

Charles River Development is an award-winning provider

of technology systems and services for investment firms

in the institutional, mutual fund, banking, hedge fund,wealth management, insurance and pension industries.

As of June 30, 2007, Charles River supports more

250 clients in 30 countries with comprehensive and

innovative products and services that enhance their

business and that of their customers. Recognizing

the strategic importance of local knowledge and

experience to meet clients needs,Charles River

maintains headquarters in Boston, regional offices inLondon, Melbourne,Paris and Singapore and has a local

presence in major financial centers around the globe.

Charles River is recognized as the leading investment

management system provider in terms of user

satisfaction, cost efficiency, reliability and speed.

The firm complements its software with a full range

of implementation, hosting, remote managementand consulting services.

Charles River Development

7 New England Executive Park

Burlington, MA 01803

Jennifer A. Duggan, Sales Executive

+1.781.238.0099; +1.781.238.0088 fax

[email protected]

Tom DriscollVice President Sales and Marketing

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The Swivel Chair

Historically, traders have had a choice of two workflows when

using an OMS and an EMS; both suffer from the Swivel Chair

Effect. In the first workflow, order staging, the trader leverages

the functionality of his OMS to generate an order and send it

to the EMS. Through the OMS the trader will model the trade,

run it through risk and compliance, and pre-allocate it to the

appropriate accounts. To stage the order, the trader then fills

out a ticket, sends it to the EMS, swivels to the EMS screen,

accepts the order, and routes it to the market. In a world where

time is measured in milliseconds, this staging workflow adds

many seconds to the total execution time. Modifying the order

is equally cumbersome, requiring the trader to swivel back to

the OMS, adjust the order, and then send the change to the

EMS where he accepts it and sends it into the market. Failure to

follow the proper process can result in a mis-matched order and

a broken link between the OMS and EMS.

The second option is what we call Cowboy Mode. In Cowboy

Mode, the order originates in the EMS. This workflow is fast,

allowing the trader to quickly get an order into the market, but it

bypasses key functionality of the OMS such as compliance and

position checking. In this mode, it is easy to imagine overselling

a position or violating a compliance rule and not discovering the

issue until after the order is executed.

The Challenge

With two separate systems on the desktop traders are always

sacrificing the benefits of one for the benefits of the other. The

challenge is in how to deliver both. We knew with the right

approach, the right architecture, and the right expertise, this

challenge could be overcome and the OMS could be enhanced

to include EMS functionality.

Our Approach: A Single-System Solution

The key to the approach is putting it all together as

one single-system: one blotter, common functionality,with a consistent look-and-feel. For example, in a

single-system solution when a trader enters an order

directly in a montage it can seamlessly run through

compliance and position checking; when he modifies

the order anywhere in the system it is instantly updated

throughout the system. This is possible because its all

one system eliminating the challenges of passing

information between two different systems created by

different companies.


Its All About Workflow!Introducing A Single-System Solution For Order And Execution Management

OMS and EMS platforms are converging on the desktop. Its no secret. The buy-side wants it. Industry consultants, vendors, and

the press are talking about it. But, the real story, the driver behind this convergence, is workflow specifically, streamlining the

number of steps required to quickly put an order into the market without sacrificing functionality. Historically, the OMS and the

EMS have co-existed on the desktop linked through a FIX interface. These interfaces, however, have limitations that force the trader

to choose either the robust functionality of their OMS or the execution speed of their EMS. The only way to offer traders both the

speed they crave and the functionality they need is by going beyond FIX integration and creating a single-system solution. This is

the next logical step in the evolution of the OMS.


The key to the approach is

putting it all together as one

single-system: one blotter,

common functionality, with a

consistent look-and-feel.

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Our Architecture: SOA

Eze Castle has been aggressively migrating to an

open and scalable service-oriented architecture (SOA)

giving our platform the flexibility and scale required

of a modern OMS. This architecture will allow us to

enhance our OMS to include EMS functionality without

compromising speed each component or piece of

functionality can be tuned and scaled independently. In

addition, it allows components of the system, including

the EMS functionality, to be upgraded independently.

Our Expertise: BNY ConvergEx Group

As with any project, you need to have the right people

in place to quickly and effectively meet your goals. The

execution and buy-side technology expertise across

BNY ConvergEx enabled us to bring to market the first

single-system solution in nine months.

The Single-System Solution The Enhanced OMS

The OMS is the technology hub of the buy-side. As our clients

investment styles have grown more complex, so has our OMS.

Since our first client went live in 1995, we have seen our OMS

evolve beyond equity order management to become a multi-

strategy, multi-asset class system enhanced with functionality

to support compliance, commission management,and dynamic

profit and loss. Incorporating global EMS functionality into our

OMS and extending that functionality to support multiple asset

classes is the next natural step in the evolution of the system.

Enhancing the OMS by adding global execution capabilities and

fully integrated real-time market data is the right way to meet

the challenge of delivering both speed of execution and a robust

feature set of functionality for the trader. This new paradigm,

the natural evolution of the OMS, gives the trader access to

EMS functionality in one system, simplifying their workflow and

streamlining their investment process.


Eze Castle Software is a leading provider of technology

solutions to global investment managers and a member

of BNY ConvergEx Group.

Eze Castle Software LLC

12 Farnsworth Street, 6th Floor

Boston, MA 02210

(646) 346-1140

[email protected]

www.ezecastlesoftware.com

www.bnyconvergex.com

Jeff GavinElectronic Trading Product Manager

Eze Castle Software

Jeff ShoremanCOO

Eze Castle Software

Enhancing the OMS by adding

global execution capabilities

and fully integrated real-time

market data is the right way

to meet the challenge of

delivering both speedof execution and a robust

feature set of functionality

for the trader.

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Fidessa LatentZeros response has been to create a solutionfor the buy-side front office that can be delivered in two forms:

the Fidessa LatentZero EMS workstation; and the fully integrated

Fidessa LatentZero OEMS, the markets first buy-side order and

execution management system (OEMS), combining the full

power of leading OMS and EMS solutions into a single system.

Enhancements made to the broker neutral EMS components

are automatically available within the OEMS.

Fidessa LatentZero EMS

The Fidessa LatentZero EMS is a web deployed market data

and low latency trading workstation for equities and equity

derivatives, and leverages the software widely deployed by

Fidessa on the sell-side. Real-time data is fed from the Fidessa

LatentZero ticker plants for 50+ global exchanges, including

level 1 and 2 security and index data as well as IOIs, news and

graphs. Execution connectivity is provided to over 200 brokers

and their associated algorithms as well as DMA to all major

global exchanges.

The EMS solution, which is used by over 100 firms globally, is

ideal for a hedge fund or asset manager requiring out-of-the-box,

fully hosted broker neutral market trading, and can be used as a

standalone workstation or connected to any OMS, automatically

receiving orders and sending back executions.

Fidessa LatentZero OEMS

The Fidessa LatentZero OEMS is the first system to provide a

complete cross-asset buy-side order management and trading

environment. In addition to the market connectivity and trading

functions provided by the EMS components, the OEMS includes

real-time position keeping and P&L, portfolio analysis and

drill-down, order management workflows, and investment and

trading compliance,and meets the demands of global regulatorsand MiFID.

Support is provided for equities, fixed income,money markets,foreign exchange and listed and OTC derivatives. The system

can be deployed globally if required from a central server, with

the same real-time performance in all locations, which is an

important product differentiator for the increasing number of

multi-site managers. The Fidessa LatentZero OEMS is used

by small specialist managers, through to the worlds largest

institutional buy-side firms.

Portfolio Management

FidessaLatentZeroOEMSprovidesreal-timepositionmanagement

and P&L, exposure analysis and drill-down, with flexible support

for strategies. Portfoliomanagers andtraderscangenerateorders

to suit many investment styles using various techniques across all

asset classes, including listed and OTC derivatives. Orders can be

executed immediately by a manager/trader, or can be routed to a

trading desk located anywhere in the world, 24 hours a day.

Pre-trade Analysis

TheOEMS provides pre-trade order sizeanalysis andtransaction

cost estimates, as well as 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 50+

globalexchanges, andcalculated columnswith heat maps enable

traders to set up their own analytics and alerts.

A rules based auto-routing engine enables small or low impact

orders to be immediately routed to any trading destination,

minimizing delay costs and removing noise from the order blotter,

allowing buy-side traders to focus on larger, more difficult orders.

Execution Destinations and Strategy

The OEMS provides single-click, low latency connectivity from

the blotter to the 200+ brokers, broker algorithms and globalDMA destinations supported by the Fidessa LatentZero EMS.


Fidessa LatentZero Launches theMarkets First OEMSby Richard Jones CEO, Fidessa LatentZero

Aligned with the quest for fund performance, and with investors demanding more transparency, the execution quality of buy-side

trading desks is coming under the microscope. In addition, with growing regulatory pressures in the US, Japan and Asia, and the

introduction of MiFID in Europe with its prescriptive client order handling and best execution requirements, the operational control

of buy-side trading has also come to the fore. As a result, the buy-side is now demanding broker neutral EMS capabilities fully

integrated with the more traditional portfolio management, workflow controls and investment compliance offered by an OMS.



13/23

Connectivity is also provided to all major alternative trading

systems, such as LiquidNet, ITG Channel and Pipeline for equities;

TradeWeb,Bloomberg AllQ, MarketAxessand Bond Vision for fixed

income, FXAll and FXConnect for foreign exchange, and others.

Multiple execution destinations can be used for a single order,

so for example, a trader could first look for liquidity in LiquidNet

and achieve a 40% match, then place a further 40% of the order

on a VWAP algorithm,and use DMA for the remaining 20% to try

and achieve some price improvement. Such execution strategies

can be saved by traders for re-use.

A comprehensive list trading module provides pre-trade

list analysis, wave management with access to all execution

destinations, and integrated compliance.Fidessa LatentZero OEMS includes real-time execution

benchmarks enabling traders to monitor the quality of executions

intra-day. Trades canbe loadedto third partypost-tradetransaction

costs analysis systems, and a full quote history is retained for

quote driven markets, along with hit ratio reports.

Operational Control, Compliance and Record Keeping

Executions for single and list orders are allocated in real-time

to portfolios and strategies according the clients allocation policy,

including full commission and charges calculations, with real-time

updates to positions, P&L and cash management functions. Commis-

sion target monitoring functionality is included,as well as interfaces

to trade confirmation systems, and all major back office systems

providing seamless integration with downstream processing.

Tight process controls and permission management within

the OEMS, along with integrated investment compliance, greatly

reduce the risk of investment or trading errors. Comprehensive

mandate,regulatory and management 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 defined, which,

combined with a full transaction history and audit trail of all

user activity, meet the client order handling, record keeping and

transaction reconstitution requirements of RegNMS, MiFID and

other major regulators.

Product Direction

An aggressive development schedule is designed to keep the

EMSandOEMS ahead of thecompetition. Current initiativesinclude,

amongst others, a continuous stream of EMS enhancements driven

by buy-side customers, and a focus on portfolio management and

trading for fixed income and credit, interest rate and equity OTCderivatives.


Fidessa LatentZero is a global technology firm that specializesin developing complete front-office solutions for the buy-sidecommunity. FidessaLatentZeros Capstone product is used bynine

of theworlds largest tenasset management organizations, throughto small specialist managers and hedge funds. More than 5,000portfolio managers, traders and compliance officers worldwiderely on Capstone to manage assets in excess of $8 trillion.

Capstone is comprised of three components,all of which providecomprehensive functionality for Equities, Listed Derivatives, FixedIncome, Money Markets, FX and OTC Derivatives:

Tesseract for portfolio slice and dice, real-time P&L,strategy management, modeling, what-if scenarios andorder generation.

Minerva OEMS for order management, trading (EMS) andpost trade processing.

Sentinel for pre- and post-trade investment compliance.

Capstone can be installed as a single system, or anycombination of modules may be implemented. In addition:

An optional OTC Derivatives overlay module providesend to end investment workflows and pricing for OTCcredit, interest rate, inflation, equity and currencyderivatives across all areas of the Capstone suite.

A standalone,web deployed EMS market data andconnectivity workstation can be deployed for clients requiringout-of-the-box, fully hosted, broker neutral market trading

for global equity and listed derivatives. The EMS can beconnected to any third party OMS.

The Service Oriented, Event Driven technical architecture(SOA/EDA) which underpins Capstone is state-of-the-art and

works seamlessly with any other front,middle or back-officetechnology. It provides a 24x7 high performance solution that isscaleable, can be implemented globally and is easily integratedwith external systems.

Fidessa LatentZero provides expert assistance with systemimplementation, including technical integration, businessprocess/workflow consulting and training.

Fidessa LatentZero1 Alfred PlaceLondon WC1E 7EB

Ph: +44 (0) 20 7462 4200Email: [email protected]: www.latentzero.com

Richard JonesCEO

83


14/23

OMSs were not designed for todays sub-millisecond world of

trading and OMS vendors have been slow to respond to the needs

of the modern trader. EMSs, on the other hand, handily deliver

the required performance as well as the tools needed for best

execution; however, they do not address all of the functionality

of the OMS, which increases risks and operational challenges.

It is clear that an integrated system makes the most sense, but

how does one efficiently combine all of the functionality a trader

requires into one system? The technical challenge is substantial

and investment managers must carefully considereachproviders

consolidation method and experience.

ITGs approach is to deliver a single tool for the trader where

the historical distinctions between OMS and EMS disappear. ITG

is taking the inherent concepts from each world and delivering

them as an entirely new application that is optimized for trader

workflow and performance and allows the institution to better

manage the entire pre-trade, trade, and post-trade process with

proper audit and control. This new concept, ITG Triton X, delivers

unified workflow and EMS performance without compromising

compliance, cash, or other constraints.

Todays traders are faced with increasing demandsto preserve

alpha, reduce impact, and generally increase efficiencies to minimize

costs,while utilizing a multiplicity of systems to do so. Developing a

comprehensivetool that spans the requiredEMS and OMS functions

is not easy. Many vendors underestimate the technological

complexities of market data management, dealing with trading

restrictions, and isolating compute-intensive tasks from high-

performance trading activities. ITG is unique in itsability to deliver

all of the tools a trader requires, integrating data from throughout

the process, as a comprehensive, best-of-breed solution. No other

provider offers the same depth of experience or as many proven

market-leading solutions.

ITG brings to the table years of experience with both OMS and

EMS systems. Since its founding in 1987, ITG has developed

numerous iterations of its EMS and OMS tools. With each new

generation, ITG has improved the traders workflow by addressing

client-specific concerns with their daily activities using ITGs or

other vendors tools. ITG Triton X benefits from ITGs years of

experience in these areas,including themorethan 140person-years

of development effort expended on Triton, one of the leading

execution management systems available today, as well as the

proven order management capabilities of Macgregor XIP. ITG

Triton X melds the best of these applications on a single platform;

ITG has carefully selected the technologies best suited to each

particular function.

Working on a dailybasis with traders provides ITG with the years

of experience required to properly deal with trading restrictions.

The largest asset managers, for example, trade thousands of

securities across thousands of portfolios with dozens of rules

constraining each one. OMS products have bogged down under

this load. The ability to break off slow or compute-intensive

functions away from those activities that need to be conducted

with speed is only available to vendors like ITG who control, and

understand, all aspects of the application. For example, a trader

needs to monitor his environment in real-time but doesnt need

to immediately conduct allocations to particular accounts. With

a unified platform, the allocation process can be off-loaded and

conducted elsewhere so that it can occur in a timely manner, but

without hindering the traders performance.

Data management is another crucial component to delivering

a comprehensive OMS/EMS. ITG has been dealing with real-time

market data, and its ever-increasing volumes, as well as historical

data and analytics for decades. ITG intimately understands the

complexities and nuances of efficient data management because

our portfolio trading desk, research teams, and best execution

tools utilize this data extensively. OMSs are not optimized for

the torrents of data needed by todays traders and managers,

whereas ITG Triton X makes use of an EMS-like architecture that

has been designed to deal with streaming real-time data and

provide the necessary scalability and capacity.

Finally, client participation and insight can also make the

difference in delivering a truly best-of-breed, comprehensive

system. ITG services a wide variety of clientsfrom hedge

funds trading single stocks to large asset managers managing

thousands of orders. Not only is ITG familiar with the unique

problems of various types of accounts, the firm relies on its close

client relationships for feedback to build and enhance its full

range of end-to-end trading solutions.


ITG Beyond the EMS/OMS ConvergenceThe true goal of OMS /EMS convergence is to achieve the optimal trader experience traditionally associated with the EMS without

sacrificing the safety and controls associated with the OMS. To achieve this convergence, many investment managers are using

either a vendor who added an EMS to an existing OMS or a multi-vendor solution; however, the use of two systems is inherently

inefficient, forcing the trader to flip back and forth.



15/23

ITG Triton X

Only ITG has delivered all of the essential pieces to solving

the OMS/EMS puzzleproven EMS capabilities, market-leading

pre- and post-trade analytics, a global routing network, extensive

intellectual capital, a history of innovative technology, and true

neutrality across brokers, liquidity destinations, and vendors.

ITG Triton X brings them all together in a cohesive fashion and

goes beyond traditional EMS and OMS functions to deliver a

unified platform designed to optimize the trading experience

and revolutionize order management.

Broker/algorithm/vendor neutral

ITG Triton X offers freedom of choice; integrate with your preferred

systems, route to any destination, trade with your selected brokers,

utilize your algorithms of choice.

Proven execution management

ITG Triton X leverages the 140+ person-years of development

effort behind Triton, one of the industrys leading execution

management systems, to deliver fast, proven trading capabilities.

Comprehensive trading functionality

ITG Triton X seamlessly brings together order management and

execution management functionality on one platform designedfor maximum speed and efficiencywithout staging, re-keying,

or data loss.

Market-leading best execution tools

ITG Triton X seamlessly melds information from throughout the

trade lifecycle by integrating marketing leading tools for pre- and

post-trade analysis, including ITG Logic and ITG TCA.

Portfolio management

ITG Triton X builds off the success of the Macgregor XIP PM tool

to provide sophisticated modeling, multi-asset class optimization,

and integrated pre-trade analytics.

Enterprise-class compliance

Through ITG Compliance, ITG Triton X offers central management

of global portfolio compliance activity with integrated real-time

pre-trade monitoring and end-of-day capabilities.

Global FIX connectivity

ITG NetSM offers ITG Triton X users with global FIX communications

direct from the blotter that are fully managed, fast, secure, and reliable.

Automated, exception-oriented trade processing

ITG Trade Ops automates global post-trade securities matching

and settlement communications through tight ITG Triton X

integration and Service Bureau connectivity to the industrys

post-trade utilities and your financial counterparties.


Investment Technology Group, Inc. (NYSE:ITG), is a

specialized agency brokerage and technology firm

that partners with clients globally to provide innovative

solutions spanning the entire investment process. A

pioneer in electronic trading, ITG has a unique approach

that combines pre-trade analysis, order management,

trade execution, and post-trade evaluation to provide

clients with continuous improvements in trading and

cost efficiency. The firm is headquartered in New York

with offices in North America, Europe and the Asia

Pacific regions.

Founded in 1987, ITG was one of the first firms to recognize

the potential of electronic trading and continues to help

clients trade more efficiently and reduce transaction costs

through a combination of technology and client service.

ITG has focused on helping clients better navigate an

increasingly complex marketplace, starting with the launch

of POSIT, an electronic system for low-cost, confidential

crossing. Recognizing a need in the marketplace for

integrated solutions, ITGaddedpre- and post-trade analytics

and multi-asset class order management to its product

offering. Nearly 20 years later, ITG remains committed to

providing clients with the same high standard of service

and innovation. For more information on ITG,please visit

www.itg.com.

Investment Technology Group, Inc.

380 Madison Avenue

New York, New York 10017

Email: [email protected]

Website: www.itg.com

Andrew Larkin

Managing Director

85


16/23

Upon completion of that first consulting project, the companys

founders both recognized the significance of the FIX protocol

and the future impact it would have on the financial industry.

They decided to launch InfoReach and one of the industrys first

pre-built FIX engines. For several years, they continued working

on in-depth consulting projects for many well known institutions,

international exchanges, etc. After many years of consulting and

building FIX infrastructures from the ground up, many of our

clients began requesting a front-end GUI which can monitor and

control orders. Recognizing this need, the company quickly built

a tool kit for the rapid deployment of a trading system. This was

in essence the birth of todays InfoReach TMS trading platform.

In 2002, after many custom deployments, we decided that we

had a formidable enough product to compete with the existing

vendors and we ultimately made the decision to productize the

trading system. Today, we offer two core products, the InfoReach

FIX Engine and TMS. We currently are headquartered in Chicago

with a satellite office in New York that is geared towards sales

and marketing.

Our philosophy and focus have always remained the same, to

build a superior technological product. Our products dont just

look good, they are solidly built and well respected within the

industry. We are confident that people which are serious about

technology and need a product they can trust will call InfoReach.

Recently, a major buy-side firm summed our approach up in one

sentence We like InfoReach because unlike your competitors,

you didnt go out and carpet bomb the industry.

Our translation, we didnt go out and bite off more than we

can chew. Aside from technology, we realize that service must

be superior in order to survive on Wall Street. We have grown

the business in a manner which has allowed our products to

evolve while maintaining a high-level of customer satisfaction.

Balancing strong technology and customer demands has been

the key to our success.

The InfoReach TMS was first deployed in 1997. Through the

years our strategy has been to incorporate all customer requested

functionality into the TMS. After ten years of development, we

have the largest set of functionality offered out of the box.

What does this mean to our clients? Most importantly, less

functionality has to be developed by programmers, resulting in

a quicker deployment at a lower cost.

Since day one, we have never charged for set-up of the TMS.

The product itself is a broker neutral execution management

system capable of trading global equities, options, futures

and forex. It is most commonly used buy hedge funds, asset

managers and sell-side program trading groups. Users can trade

single orders or baskets either manually or algorithmically. Key

components would include our custom built algorithms with

which we supply our customers the code. The reason we do

this is so they could customize our algos to meet their needs

with relative ease. The TMS is also integrated with most broker

dealer provided algorithms. The combination of proprietary

algos and broker provided gives our clients true neutrality with

regard to algorithmic trading.

Other key components are connectivity to the street via

the InfoReach FIX Network, as well as, interactive charting

capabilities. Our interactive charting is important to many of

our clients because when trading a large set of names it is quite

difficult to monitor executions. What we did was create charts

which monitor the orders real-time and allow users to interact

by trading off of the charts. This is useful because traders can

quickly identify and act upon outcast orders, slippages, etc. The


InfoReach

InfoReach was founded in 1995. What began as a consulting collaboration has evolved into

one of thepremier software companies within thefinancial technology marketplace today.



17/23

TMS also offers a full suite of pre and post trade analysis tools.

These tools are fully integrated with the execution capabilities

of the system and allow initiation and control of executions right

from the pre and in-trade visual analysis tools.

The key differentiating factors of the TMS vs. other similar

or competing products is architecture and the amount of

functionality it delivers out-of-the-box to trading firms. We have

been working on the infrastructure components of the TMS

for years making sure we are laying down a robust product

foundation capable of accepting future functionality imposed

by trading. The character of the TMS was greatly influenced by

initial set of requirements and the vision of the environments it

should fit into. Namely, it had to be an enterprise-wide solution

that can be used by majority of traders in the firm, regardless of

their physical location and security types they trade. Therefore,

the core of the TMS is its consolidated and scalable server,

which consolidates trading activity of each trader and strategy

in real-time and it can be scaled across multiple networked

computers to handle increased performance requirements.

Server-centric technology allows achieving greater performance

and reliability as it is decoupled from GUI part that can affect

overall performance.

When you evaluate execution management systems there is

only one fundamental objective you need to keep in mind. An

EMS must get you in and out of positions at the lowest possible

cost. When you add all cost factors such as performance, price

of the product, amount of functionality it makes available,

quality of its support and reliability you will find the INFOREACH

TMS is useful for this very reason.


Users can trade single orders

or baskets either manually or

algorithmically. Key componentswould include our custom built

algorithms with which we supply

our customers the code.

InfoReach is an innovative company focused on

providing leading software solutions for the electronic

trading of financial securities.

Established in 1995 InfoReach promptly recognized

industry technology trends and created its product line

of INFOREACH FIX Engine (FIX protocol engine) and

INFOREACH TMS (Trade Management System). Our

products are open, scalable and flexible solutions for

firm-wide order execution and management.

An abundant arrayof features combined with committed

support have made InfoReach the technology of choice

for many major buy and sell side financial institutions.

InfoReach employs a staff of over 30 industry

professionals in offices throughout the United States

and Europe.

InfoReach, Inc.

80 Broad Street, Suite 2706

New York, NY 10004

www.in4reach.com

Sales

212-269-2722

[email protected]

Allen ZaydlinCEO

87


18/23

Flexibility

Businesses are constantly changing and evolving. Given this,

a platform needs to have an open architectureone that allows

a trader to implement their own unique ideas while seamlessly

integrating with their current environment. This is a system that

is truly flexible in all definitions of the word, no matter how

complex or strict the requirements.

Following the traditional trend of broker-developed algorithms,

the buy-side now has the capability and means to build their

own algos that are more complex and tailored to their specific

requirements. Many realize the key advantages from being able

to control their ordersthese include lower market impact and

lower commissions.

Portwares infrastructure allows for easy implementation/

integration with internal systems, proprietary strategies and

algorithms. We have certifications with over 300 execution

destinations, connectivity with the major market data providers

as well as complete access to algorithmic suites from over 30

individual brokers. The modern trader now has the ability to

control and customize a solution that is unique to them on aplatform that meets the high speed requirements of todays

environment.

Scalability/Performance

Speed and capacity become important factors as the

electronic trading trend continues. The buy-side is facing rising

expectations to increase capacity and capabilities, and the

trader is expected to focus on how to best capture expected

alpha while minimizing impact. With this demand to control

orders comes the responsibility and need to have a platform

designed to handle high frequency and capacity. The execution

management system (EMS) has evolved to have both traditional

order-entry/direct market access tools as well as an automated

environment for the trader. These are gaps that the traditional

order management systems (OMS) are not designed to handle.

Portware provides a global, multi-asset trading system which

supports portfolio, single order and automated trading in an

enterprise environment. It gives the trader the ability to once again

take control: maintain a complete audit trail with timestamps,

benchmark and market snapshots, monitor performance and

risk in real-time across many orders, implement their own

algorithms, aggregate multiple sources of pre and post trade

TCA and IOIs, control their own orders, whether via algos or

DMA, and access all available liquidity venues including dark

pools.

Anonymity

The buy-side is now realizing the advantages of having a third-

party, broker neutral system. It allows them to utilize algorithmsdeveloped by the sell-side and route them to any destination.

They now have a choice and this means unprecedented control

and anonymity over their orders and executionkey information

can be kept close to the vest. This issue of visibility comes into

play with the many acquisitions by broker-dealers who want to

increase their offerings and position. While the two entities are

kept independent of each other, for compliance reasons, there

is rising concern from the buy-side on the extent to which their

order flow is visible. It is important to evaluate how this relates

to your business.


Portware The New Age EMSStaying ahead of the competition requires a central, robust platform that best fits your growing business and technological needs.

In doing so, it is important to examine three key factorsFlexibility, Scalability/Performance andAnonymity. All of the above

mentioned will allow the buy and sell side trader to take advantage of new opportunities in electronic trading while also allowing

them to adapt to changing market environments. Portwares open, flexible architecture gives financial institutions to tools to do

just that. It allows for the addition of new functionality and seamless integration with existing infrastructures as well as third party

applications such as risk compliance, order management systems, data feeds and networks.



19/23

Portware is a leading provider of a broker-neutral trading

system that delivers a suite of execution algorithms along

with a platform that allows a trader to easily develop their own

strategies. The neutrality of the platform also gives unrivalled

access to multiple pools of liquidity and unlimited sources

of TCA (Transaction Cost Analysis) from one seamless and

customizable portal. We have incorporated multiple broker and

independent pre-trade cost estimates and post-trade analytics

combined with real-time benchmarkingtools for achieving

and proving best execution. Users now have a real-time, single

view of their trading workflow and transaction costs in order to

execute trades more efficiently, minimize market impact and

improve performance. Portware provides a complete snapshot

of key points throughout the trade cycle which allows extensivetrade analysis of best execution. Financial institutions now have

the means to control their complex trading strategies and risk

while having all information available to them on one, single

platform.

When searching for the trading solution that best fits your

business, the process can be broken down to a few criteria:

flexibility, scalability/performance and anonymity. By looking at

each key factor, you can uncover the needs and find a system

that makes the most sense. In the end, this crucial decision will

help you maintain a competitive advantage over everyone else.


Financial institutions now have

the means to control their

complex trading strategies

and risk while having all

information available to them

on one, single platform.

Founded in 2000, Portware LLC is the financial industrys

leading developer of broker-neutral, automated portfolio

trading software for global equities, futures, options

and FX. With offices in New York, London and Asia,

Portware works in partnership with its clients to

create highly integrated solutions to streamline

workflow and increase operational efficiencies on

trading desks worldwide.

U.S. Office

233 Broadway

24th Floor

New York, NY 10279

1.212.425.5233

[email protected]

www.portware.com

UK Office

3 Bunhill Row

London EC1Y 8YZ

020 7083 7171

[email protected]

www.portware.com

Asia Office

Level 39, One Exchange Square

8 Connaught Place, Central

Hong Kong

852 3101 7676

[email protected]

www.portware.com

89


20/23

The electronic financial markets are transforming at light speed

across both low-touch and high-touch execution models. The

regulatory environment is one catalyst leading the charge via MiFID

inEuropeandRegNMS intheUnitedStates,alongwith thecontinued

electronic evolution of global markets. Execution destinations

are transforming themselves as a result of competitive pressures

brought on byoperatingas for profitentities, through consolidation,

improved technology, enhanced functionality and broadening the

products and services they offer to market participants.

In response, brokers are being forced to provide new products

and services such as sophisticated algorithms and more targeted

functionalities across a broad range of asset classes to help their

valued clients achieve best execution regardless of size or complexity

ofanorder. Institutional tradersincreasingly requireaccess tomultiple

brokersbasedoncriteria such asservice, content, and expertise. And

all the while, quote rates continue to exponentially increase.

As a result, trading grows even more complex, requiring new

technologies to capture market opportunities as they arise--often

in a matter of milliseconds. For many traders, this translates into

multiple terminals on their desks, each with a different purpose

and content. And many still wonder, cant one common system link

them all together in a single trading platform?

The good news is that the technology is already available. But to

get to where you need to be, you need straight answers from your

Execution Management System (EMS) provider on the following:

How compatible is my EMS with my OMS?

Does the EMS offer the flexibility to seamlessly integrate

with my OMS?

With a multi-broker and multi-asset EMS, does my OMS offer

enough flexibility to pre-designate broker routes across individual

asset classes?

How flexible is the EMS with various symbologies such as

Bloomberg and RIC codes along with proprietary securities

identifiers used by the OMS?

Is my EMS seamlessly integratedwith the dataand content I need?

More and more EMSs have been designed to integrate

sophisticated streaming data and value-added content alongside

full trading functionality. If you still source the majority of your

data and content from an external application as opposed

to your EMS, you stay a step behind by introducing a level of

human latency into the trading equation.

What are the speed, breadth and quality of the data and

content I use to make trading decisions?

There was a time in the not so distant past when simply the

availability of streaming data more than sufficed to meet the

needs of most traders. Now its not even enough to just keep

you in the game. You need data and content of the highest

quality and lowest latency if you want to compete with those

traders already armed with this.

Ask your provider about QPS currently being delivered, their

overall capacity and future expansion plans. Find out if their

technology is scalable or if they need to rebuild it from scratch.

Simply put, if their technology is not state of the art, then you

will not be able to achieve best execution.

Other questions to ask about your providers data:

Where are their data centers physically located?

Do they provide hubs in other locations? Do they automatically scrub the data?

What connectivity options do they offer to the end-user?

Internet, direct feed, financial extranet?

Do they offer full depth of book quote display where

available by source?

Does the full breadth of data encompass multiple asset

classes across global liquidity providers?

Is Your Execution Management SystemKeeping Up?A Revolution Is Occurring In Electronic Trading TechnologyAnd You Cannot Afford To Be Left Behind



90


21/23

Townsend Analytics is one of the worlds premier

providers of advanced, integrated capital markets

and trading technologies. Townsend offers Trading

Services, Content Data Services, Exchange Services,

and Portfolio and Risk Services for financial institutions

and investors in over 94 countries around the world.

Townsend is the creator of RealTick EMS, the electronic

trading industrys premier multi-asset, multi-broker,

and multi-route direct access trading platform.

Townsend Analytics

www.townsendanalytics.com

Sales

[email protected].

Can I trade multiple asset classes across multiple

regions on my platform?

Cross-asset strategies are now the name of the game,

and the days of single- or limited-asset class terminals are

numbered. Exchanges are introducing new products weekly, and

the financial markets are becoming more and more co-mingled

across assets. By choosing an EMS that provides a centralized,

global view of positions across asset classes, P&L and other

critical trading information within a single, tightly-integrated

platform, you can ensure best execution, limit risk and reduce

mistakes commonly made when trading multiple asset classes

on separate platforms.

Is my trading platform limited to a single broker or do I have

access to a broad network of brokers through a single terminal?

Investment managers today engage in multiple brokerage

relationships simultaneously, both to preserve anonymity as

well as to have access to an appropriate range of specialized

products and services. These can include proprietary research,

analytics, algorithms and specialized execution services. Thats

why a multi-broker, multi-asset trading platform has become

one of the primary demands of the buy side.

Is my EMS platform truly broker neutral?

Being multi-broker doesnt always equate to being broker

neutral. To preserve the anonymity of your order flow, ensure

that your EMS provider is truly neutral and is not preferencing

certain destinations or liquidity pools, and maintains separate

locations, staff, infrastructure and networks from that of any

other broker on its network. Be satisfied that controls are inplace to provide full broker neutrality to all customers.

Summary

Thanks to recent advances in technology, what was once

thought of as the elusive Holy Grail for traders has become a

reality. A multi-broker EMS that can integrate data,news,analysis,

direct-access trading and order and risk management tools into

a single platform should now be an essential component of the

buy-sides trading desk.

If your current EMS provider comes up short in a few of the

areas outlined in this overview, its time to consider making a

changeto thebest-of-breed technology youneedto thrive in todays

global markets. Townsend Analytics invites you to explore how

our RealTick EMS can help you maximize trading opportunities,

achieve best execution and minimize risk across multiple asset

classes. Its the platform of the future...available now.

For more information, please visit our website

www.townsendanalytics.com or email us at [email protected].

*RealTick is a registered trademark of Townsend Analytics, Ltd.

2007 Townsend Analytics, Ltd. All rights reserved.

A Supplement to Traders Magazine, Produced by SourceMedias Custom Publishing Group 91


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What is UBS Pinpoint, and why did UBS build it?

UBS Pinpoint is our next generation desktop trading system.

We originally built Pinpoint for our own use on the UBS Equities

desks. As we evolved this EMS, we added functionality making

it an extremely valuable, user-centric offering. It became both a

robust internal system and a valuable, leading-edge platform for

clients. We initially rolled it out to our prime brokerage clients,

and Pinpoint has grown from there. After just 18 months, we

have almost 800 users. Pinpoint is a strong complement toUBSs very open vendor connectivity model.

What makes Pinpoint a next generation offering?

First, because we created Pinpoint from the ground-up, we

created a platform unburdened by legacy technologies. The

architecture is designed to be incredibly fast and reliable.

Latencies are just 2-3 milliseconds; the overall platform processes

over one million orders each day with that performance. Our

Pinpoint developers deliver new functionality to our clients

every month. Weve chosen not to use a heavy, bureaucratic

development model where one plans and analyzes a release

for six months, then spends another six months fixing the bugs.

We have small, frequent releases which mean fewer bugs and

quick adaptation to changing client demands. Pinpoint also

integrates easily with other systems and is so flexible traders

can design desktops that precisely suits their unique workflow

and preferences.

What is unique about how you developed this system?

At UBS Direct Execution, there is no real distinction

between technology and the business. Our traders understand

technology, and our technologists understand and often have

been traders. So Pinpoint doesnt force traders to accept a

developers concept of how they should work. Rather, it gives

traders the control to make the system suit their own needs.


UBS Pinpoint Q&AWill Sterling, Managing Director and global head of UBS Direct Execution, discusses

UBS Pinpoint the firms institutional execution management system.



23/23

UBS is extremely committed to technological innovation, and

invests accordingly. Pinpoint doesnt compromise on the right

design a discipline that is sometimes quite challenging, but

well worth it in the long run.

What do your clients like most about Pinpoint?

Our clients love that they can login to Pinpoint anywhere in

the world, and are at their own desktop. They like how intuitive

the experience is clients control the interface enabling

them to customize layouts and execute quickly. They like that,

through UBS, they can access over 130 markets across the

globe, use the full suite of UBS algorithms, and find crossing

opportunities in UBS Price Improvement Network (UBS-PIN),

our own non-quoting liquidity pool. Clients also appreciate that

Pinpoint seamlessly integrates with their other vendor systems.

A key trend we see among clients is a heightened emphasis

on performance and reliability. While new functionality can

obviously be useful, clients are increasingly less tolerant of

outages and performance issues. Given its speed and reliability,

we think Pinpoint is truly differentiated.

What about the UBS factor: What impact does UBSs scale

and diversity have on the Pinpoint product?

Its quite definitely a positive impact. UBS is a global tradingpowerhouse last year,one out of every twelve shares on every

exchange in the world was traded by UBS*. In the US, UBS trades

one out of every nine shares. Thats a tremendous amount

of liquidity. This deep experience has shaped Pinpoint; we can

transfer our go to market expertise to our clients. Pinpoint

is also fully integrated with UBSs highly innovative algorithmic

trading capabilities. Our clients can leverage the full array of our

liquidity-seeking, price-sensitive, and time-sensitive algorithms

to execute as efficiently and effectively as possible.

So what are your strategic goals for UBS Pinpoint?

Our objective is to make Pinpoint a market-leading, global,

multi-asset desktop trading system. It will evolve to stay ahead

of our clients expectations and changing needs. We want to

make Pinpoint available to clients who want the same trading

functionality and access our Equities traders have. Its not our

goal to own every client desktop. UBS Direct Execution has an

open connectivity policy. This client-centric philosophy empowers

clients to access us however they wish through any of our

third-party OMS or EMS partners, or their own proprietary trading

systems. All of our Direct Execution offerings can be delivered

You mentioned that new functionality is always being rolled

out: how do clients manage installation of so much new

technology?

Releases are pushed out to clients via the Internet so

there are no appointments to schedule, and no trader will lose

time waiting for onsite upgrades. The functionality will just

be there the next time they login. Release Notes outline what

changed and how new functionality has widened their trading

capabilities.

Whats coming next? What are some of the near-term plans

for expanding UBS Pinpoint?

Were dramatically expanding our international trading

capabilities in August, and by years end, we are adding many

new instruments including Futures and FX. Were launching

several analytical tools to enhance the trading process such

as our pre-trade analytics; our at-market UBS Alerts offering;

and our post-trade tools, which provide consultative insights

to continuously improve our clients decision making and

ultimately execution.

* Per exchange-reported statistics, 2006 Per Autex, 2006

This material has no regard to the specific investment objectives, financial situation orparticular needs of any specific recipient and is published solely for information purposes.This material is not to be construed as a solicitation or an offer to buy or sell any investmentinstruments, to effect any transactions, or to conclude any legal act of any kind whatsoever.Not all products and services are available to citizens or residents of all countries. Norepresentation or warranty, either express or implied is provided in relation to the accuracy,completeness or reliability of the information contained herein, nor is it intended to bea complete statement or summary of the developments referred to in this material. Anyopinions expressed in this material are subject to change without notice and may differ or becontrary to opinions expressed by other business areas or groups of UBS as a result of usingdifferent assumptions and criteria. UBS is under no obligation to update or keep current theinformation contained herein. Neither UBS AG nor any of i ts affiliates, directors, employees oragents accepts any liability for any loss or damage arising out of the use of all or any par t ofthis material. UBS 2007. All rights reserved.

UBS Direct Execution

677 Washington Boulevard

Stamford, CT 06901

Tel: +1-203-719 1750 or +1-800-563 8018

[email protected]

www.ubs.com

Will Sterling,Managing Director, Equities

UBS Investment Bank

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