Export Wwwroot Traders Magazine 02 Data Media Pdfs EMSOMS09[1]

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EMS/

A Suppl m t to Traders Magazine Produced by SourceMedia Custom Solutions

Providing Innovative Trading Tools toNavigate a Dynamic Market Structure

Execution Management Systems / Order Management Systems

S P E

C I A L R E P

O R T 0 9


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48 A Suppl m t to Traders Magazine Produced by SourceMedia Custom Solutions

Dr. Mayiz Habbal o Celentsays that EMS providersare savvier technically butOMS providers are in a

better position in terms o resources,including money, relationships, andeconomies o scale. Senior vice presidento Investments and Securities or theBoston-based consultancy, he notes that OMS providers,who tend to underestimate the value they deliver toclients, ear 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 messageto indicate that they are really going a er the OMSworld. He cites EMS providers belie that they cannotdislodge the OMS players at this momentspeci cally within the traditional asset-management segmentasone reason.

Te greatest challenge EMS providers ace, accordingto Habbal, is remaining independent. Te likely acquirers: OMS providers in a preemptive move againstEMS competition and to add capabilities into their

o ering or an end-to-end solution.

Habbal notes thatthese dynamics arevery symptomatico any so wareindustry and thatthe situation in the Iworld within securitiesand investments isbasically standing stillin terms o growth

because theres a lot o hesitation in terms o investment into any new initiatives. Te

EMS/OMS world really is not any di erent than theothers, he says.

On another business ront, Co-Founder andManaging Partner o Boston-based Aite Group Sang Leeraises questions about the broker-dealer model.

Tere are a lot o conversations within themarketplace regarding how the broker-owned

Business dynamics are center stage in the evolution o order-management systems(OMS) and execution-management systems (EMS). Distinctive yet overlappingroles have emerged or these technologies in recent years, and the contest hasintensi ed as both camps vie to shape the uture and position themselves or rosiereconomic times.

SpiritEndures

Entrepreneurial

Even though theyhave the capability,theyre not reallypushing with theirmarketing message toindicate that they arereally going after theOMS world.Dr. Mayiz HabbalCelent


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A Suppl m t to Traders Magazine Produced by SourceMedia Custom Solutions 49

plat ormsin light o whats been happeningto the brokersthemselveswill be ableto maintain and o era competitive product

into the marketplaceduring these tougheconomic times, saysLee. Te concept o buying a third-party vendor and continuingon that business modelwhile at the sametime maintaining andtrying to innovate moreproducts and serviceinto that particular

plat orm has been very difcult to manage.

Industry rumblings on whether the brokers will havean appetite to maintain their plat orms have sur aced.Or does it make sense or them to spin it out or sell itand ocus on their core products and o erings? Leeasks. I havent seen anything de nitive happen yeton those ronts. Certainly i things get worse, I thinkeveryone, including the third-party vendors, would bein a horrible situation.

Wave o the Future

Habbal emphasizes sel -service automation as thewave o the uture. Its your capability o controllingyour own ate, o determining what best execution is oryou, he explains. Tis is much more o a sel -service,automated, custom-made, mass customization solutionkind o an approach.

He says that when EMS providers entered into theequation, they were o ering a sel -service, automatedway to get to the market and that the OMS providerscorrectly believe this is the wave o the uture.

Lee, too, highlights automation. You have to look atelectronic trading as an efciency tool, says Lee. Te

bene t is two- old: improved operational efciency by doing more business with ewer people and improvedrisk management, such as minimizing chances or errorsthrough automated checks and balances that detect at-

nger order mistakes such as typing $100 a share or astock worth $10 a share.

Global ConnectionsAs international markets become increasingly

interconnected, EMS and OMS providers are seekingclients beyond U.S. borders. Its typical now days or

both EMS and OMS vendors to havea presence in European countries aswell as Asian countries looking or newopportunities, 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 withinother regions, he explains.

Habbal points to a problem or EMS providers,however: pricing. Tis business is becoming global, sowe really need to have di erent kinds o models to apply to di erent parts o the world, he says. Unless they really think twice about how to change their pricingstructures, theyre going to have difculty growing,

Habbal recommends switching to an ASP solution: Itis a good option or them because it is going to reducethe cost that they operate under and then help them

reduce the price.

Entrepreneurial SpiritHabbal credits vendors entrepreneurial spirit with

driving the industry orward.Te people who spend the money are actually

almost in a reezing mode, but the people whodevelop the solutions are not, he says. Tey have thisentrepreneurial spirit.

He explains that even in this environment, everybody has been carrying orward and pushing through themomentum o the revenues and cash they have been

capturing over the past several years. Tats keepingthem going in the momentum o ocusing on theproduct and making it better, and developing it. But i the economic cycle takes a long time to come up again,then all o them are going to lose steam.

DiferentiationHabbal advises rms to look beyond the vendors

nearly identical marketing messages: You really needto scratch beyond the sur ace. What makes the realdi erence is the kind o company youre engaging with,their understanding o the business, and how their

product is implemented. Its everything under the hood.From Lees perspective, customer service is an

opportunity to di erentiate. It is something that getsoverlooked a lot, but its a category that comes up ontop every time when you talk to clients, he explains.Whats the most important thing about your vendor?A lot o times its not about eatures or unctionality. Alot o times you cant even tell the di erence betweenone plat orm and another. What they care about is whenthey pick up the phone somebody answers it and getback to you.

Weve certainlyseen OMS and EMS

vendors sensingmore opportunities,

replicating whattheyve done in the

U.S. market, andtrying to build a core-

client base withinother regions.

Sang Lee Aite Group


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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 orientedarchitecture (SOA) ensures scalability and providesthe functionality, exibility, connectivity and speed toefciently manage and execute orders for all assetclasses, including: equities; FX; xed income; options;futures; and complex derivatives.

Charles River IMS incorporates global, real-time electronictrading via FIX (Financial Information eXchange) via

the Charles River Network, a broker-neutral and fully-integrated nancial network that provides access tohundreds of global liquidity venues, including dark pools.Comprehensive FIX network services include: tradesupport; network, broker connectivity monitoring andmanagement; testing and certication.

The system provides complete trade-cycle support andfeatures several modules to lower costs and risk whileincreasing operational efciencies.

Charles River Manager for decision support, portfoliomanagement 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 managementof trade matching, conrmation, and settlementworkow

Charles River Performance for daily performancemeasurement, attribution and risk data

Charles River Anywhere for secure monitoring andmanagement of Charles River IMS information via

Web-enabled devices

Charles River IMS meets buy-side clients growing demandfor greater control over trade execution strategies andexecution for their stock and list trades. The systemcontains embedded execution management (EMS)functionality and tight integration between modules deliversimproved workow and audit controls compared to third-party EMS alternatives. The real-time, events-based tradingblotter allows traders to efciently and easily manage andexecute incoming orders from multiple sources. From asingle desktop, traders can access easy-to-use advanced

execution capabilities, such as: algorithmic trading, programtrading, real-time data, integrated pre-, in- and post-tradetransaction cost analysis (TCA), trade analytics, direct marketaccess (DMA), automated order routing, and extensivecustomization 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

Greater Control over TradingStrategies and Execution


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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

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

Direct Market Access (DMA) Integrated partnerships with 9 DMA providers Multi-broker DMA console DMA order routing directly from the blotter to

execution venues

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

Charles Rivers integrated tools, data and FIX connectivityensure streamlined trade order management and execution viaa single platform.

Tom DriscollVice President Sales and MarketingCharles River Development

Charles River Development7 New England Executive ParkBurlington, MA 01803 USA

Brian Basiliere, Sales Executive+1.781.238.0099+1.781.238.0088 [email protected]

About Charles RiverCharles River Development is an award-winningprovider of technology systems and services for315 investment rms in the institutional, mutualfund, banking, hedge fund, wealth management,insurance and pension industries in over 30countries ($21 trillion AUM/June 2009). Foundedin 1984, Charles River maintains headquarters inBoston, primary ofces in London, Melbourne,New York, Paris, Singapore and Tokyo, and has alocal presence in major nancial centers around theglobe. Other offerings include: the Charles RiverNetwork; implementation services; and applicationmanagement.


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Following a year in which the nancial markets haveundergone dramatic changes, both expected andunexpected, the world of the buy-side trader has been

radically transformed. The post-MiFID fragmentation ofliquidity in the equity markets, combined with post-crunchdemands for operational control have placed buy-sidetraders under a more intense level of scrutiny than everbefore. But demands for transparency, along with theneed to demonstrate the value of the trading desk andstreamline expenditure, have pushed the integratedorder and execution management system (OEMS), rstintroduced to the market by LatentZero in 2006, to the foreonce more.

Minerva OEMS provides a complete full asset buy-side order

management and trading environment. It includes real-timeposition keeping and P&L, portfolio analysis and drill down,order management workows, and pre and post tradeinvestment compliance, and meets the demands of globalregulators and directives. Support is provided for equities,xed income, money markets, foreign exchange, and listedand OTC (credit and equity) derivatives.

By combining the full power of leading OMS and EMSsolutions into a single system, and eliminating thechallenges associated with staging orders between twoapplications, Minerva OEMS is now a well-established and

proven solution. But it is currently attracting renewed levelsof interest because it specically addresses a number of thekey issues generated by changing market conditions.

The rst of these is cost, and as capital expenditurebecomes harder to justify, a number of rms arereassessing their current set-up. Conventional logicdictates that a buy-side rm will have a single OMS, unlessexceptional circumstances dictate otherwise, while usingmultiple EMS platforms to gain better analytics, toolsand improved access to liquidity. However, the costs ofmaintaining, integrating and managing diverse platforms

have started to outweigh the benets. Certainly an OMSis a reasonably expensive core technology platform forany asset manager. But the hidden costs attached to free

EMS platforms in terms of commissions and connectivityfees have caused this model to lose its lustre.

The functionality of the OEMS has been designed toeliminate the need for multiple EMSs. It can be deployedglobally from a central server, with the same real-timeperformance in all locations, which, combined with fullasset class functionality, obviates the need for asset-specic or location-specic EMSs. Consequently, it isavailable at negligible incremental capital cost, and incursfewer ongoing operational costs as a result of its reducedrequirement for support and maintenance.

The multiple-EMS model also leads to additional costswhen it comes to maintaining visibility across the entireworkow, at a time when maintaining accurate audittrails has become a priority. Creating a single audit trail todemonstrate that a rm has exercised effective operationalcontrols or followed very specic directives with regardto best execution is extremely difcult to achieve acrossmultiple or fragmented systems. Even when an audit trailhas been produced, quantitative analysis is extremelydifcult, and it is almost impossible to conduct any form oftransaction cost analysis.

Minerva OEMS offers full transactional history andaudit trail of all user activity to meet the client orderhandling, record keeping and transaction reconstitutionrequirements of RegNMS and MiFID and other majorregulations. In doing so it creates an opportunity toassess the performance of both external brokers aswell as the asset managers own traders. Since tradersare increasingly being called on to demonstrate thatthey add value to the organisation, this level of analysisenables them to demonstrate performance with a singlequantitative measure.

OEMS Leads the WayBy Robin Strong, Fidessa LatentZero


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Tight process controls and permission managementwithin the OEMS, together with integrated investmentcompliance greatly reduces the risk of investment or

trading errors. Comprehensive client mandate andinternational regulatory restrictions are supported andchecked throughout the investment process, ensuringportfolios stay within guidelines at all times. Orderaggregation and portfolio/strategy allocation policiescan be dened, and there is no loss of compliancefunctionality or rules set up in the integrated OEMS,(compared to when orders are staged between twoplatforms), thereby minimising functional and operationalrisk. In an environment in which counterparty riskmanagement is paramount, it ensures that restrictedcounterparty and other account characteristics, which

typically do not hold well in the transition across FIX,are maintained.

Its full asset class functionality goes beyond thestraightforward equity trading functionality, and providescomprehensive support for market-making price discoveryrequired by xed income, foreign exchange and OTCderivatives in a single platform. This in turn enablescontingent orders to be executed as one basket acrossdifferent 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 wellas connectivity to all major alternative trading systems.The single set of connections reduces costs for brokers,and although this may not be of paramount importanceto the larger players, it prevents smaller niche brokersbeing priced out of the electronic trading space and thuscompromising the ability to deliver best execution. Inaddition, since more than 85 per cent of tier one brokersuse (parent company) Fidessas sell-side systems, MinervaOEMS contributes towards valuable end-to-end visibilityof the workow. The OEMS also provides connectivity

to specialist alternative trading systems, that may not beavailable through broker-supplied EMSs.

Finally, the OEMS facilitates and consolidates pre and posttrade analytics, and provides pre-trade order size analysisand transaction cost estimates, as well as managing IOIs,trade history and news to assist traders in deriving theoptimum trading strategy for an order or list of orders.Level 1 and level 2 data is integrated from more than 115global exchanges, and calculated columns with denableheat maps enable traders to set up their own analyticsand alertsa capability that is signicantly impaired whenmanaged across multiple systems.

Underpinning the development of the OEMS is Fidessa

LatentZeros unique technology architecture that supportshigh levels of throughput with no loss of performance.That architecture, previously only available to the sell-side,has been the foundation of Fidessa LatentZeros solutionsfrom their very inception and enables them to develop andscale their applications in line with changing demand. Astraditional database-centric OMS vendors follow FidessaLatentZero into the integrated OEMS space, they will facechallenges if their technology has not been designed tohandle todays high transaction and market data volumes.Minerva OEMS is used by small specialist managers andhedge funds, through to the worlds largest institutional

buy-side rms.

Demands for transparency, along with the need to demonstrate thevalue of the trading desk and streamline expenditure, have pushedthe OEMS to the fore.

Robin Strongdirector of market strategy Fidessa LatentZero

Fidessa LatentZeroLondon Head OfceOne Old JewryLondon EC2R 8DNT+44 (0) 20 7105 1000

Boston Head Ofce160 Federal Street, 16th FloorBoston MA 02110T+44 617 235 1000

[email protected]


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The Eze OMS is a global, multi-asset class, multi-strategyorder management system that leverages a real-time,event-driven service-oriented architecture to automate

the investment process from idea generation throughsettlement. In a single platform, the Eze OMS delivers therobust functionality of an OMS, with the market data andspeed of execution of an EMS.

The Eze OMSs four seamlessly integrated componentsprovide functionality to support portfolio management,compliance, trading and operations:

Eze Portfolio Management offers advanced analyticsand decision support tools: portfolio modeling;rebalancing; what-if analysis; real-time intraday andhistorical P&L; and liquidity exposure and analysis.

Eze Compliance enables rm-wide pre- and post-trade portfolio and trade compliance: ad-hoc, pre- andpost-trade compliance checks; monitoring and alertingon any data element including exposure, benchmarkor benecial ownership; and libraries of hundreds ofindustry-standard rules.

Eze Trading goes beyond enhanced FIX integration,delivering trade order and execution management ina single platform: exible, real-time trade blotter withembedded EMS; intuitive, asset-specic workows; ordergeneration, allocation, and routing; and FIX connectivity;and automated electronic security locate tools.

Eze Operations offers a comprehensive set of toolsfor managing all of your post-trade operational needs:third-party integration for pricing, trading, and securitydata; vendor-neutral integration with clearing andsettlement destinations; commission management;and real-time system monitoring and alerting.

No more swivel chairmanage your investmentprocess in a single systemThe Eze OMS with embedded EMS functionality is aproven, market-tested, single-system solution. The EzeOMS streamlines the investment process, converging

OMS and EMS functionality in one core application. Itmaximizes efciency by reducing the number of clicks(and windows) from order entry to execution, with access

to nearly 500 sell-side destinations, 550+ multi-assetalgos from 45+ brokers, and DMA to 50+ global markets,all in a single-screen.

The Eze OMS delivers DMA to 95% of the worldsliquidity, and supports 15,000+ connections between EzeOMS clients and the sell side for electronically tradinginternational 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 integratedwith modeling and analytics, portfolio and trade compliance,liquidity analysis, and even commission management. For

easy access to dark and natural liquidity from the blotter, theEze OMS integrates with crossing engines and dark poolsand supports simultaneous blotter scrapes from all theleading platforms with no added latency.

With the Eze OMS, an order is fully managed from ideageneration through settlement in one place - one blotter, asingle point of trade entry, a consistent look-and-feel, andno more swivel chair effect.

Bringing OMS and EMS together for a streamlinedworkow

In todays market environment, with increased volatility,heightened scrutiny from investors and growing regulatoryrequirements, its more important than ever to incorporatesafeguards into the investment process. In a single,consistent interface, the Eze OMS provides fast and efcientorder entry, with the safety net of pre-, intra- and post-tradeportfolio and trade compliance, exposure and positioncalculations, extensive portfolio modeling and analytics, anda complete Audit Trail that tracks the life of the order.

A single order generated by the PM can be included inbenchmark models, checked against compliance and

The Eze OMSsimplifying theOMS-EMS workow with a

single-system approachBy Rob Keller, CFA, Managing Director, Global Product Management


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exposure alerts; and sent seamlessly to the trader; thetrader 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, andinclude those locates in P&L and exposure calculations.All user actions and locate quotes are captured in theAudit Trail for documentation. Throughout the day, tradeinformation is seamlessly sent downstream to third-partiesand external systems.

With order and execution management combined in oneplatform, the Eze OMS offers ultimate exibility for howdata is viewed and managed. The Eze OMSs build-your-own workroom framework allows users to createcustomized workrooms to simultaneously view different

types of information from multiple places in the system, allin a single screen. Liquidity Management workrooms canbe created to view the order blotter, real-time performancetotals, and liquidity exposure, alongside trade montage,Level I and II market data, Charts, Market Watch, and IOIs.

A technology partner, not just a vendorThe Eze OMS is coupled with a high-touch service model.We dene ourselves as a technology partner, not justa vendor. We work closely with our clients to consultthem on technology, and partner with them to developcutting-edge functionality ahead of market demand. We

offer 24-hour global support and monitoring of all yourapplications, interfaces, and FIX connections, at no extracost , ensuring you are fully supported at all times.

The Future of the Eze OMSOur exible, scalable architecture enables us to deliverenhancements across all components of our product(Portfolio Management, Compliance, Trading andOperations) at a rapid pace. Were committed to offeringour clients cutting-edge, innovative tools that simplify andenhance their investment process.

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 orderentry workows, and dene advanced analytics andpricing models.

Extended exibility for API integrations includingintegration with data vendor APIs

Enhanced electronic trading workows including user-dened rules for automated order execution; spreadtrading, multi-leg and pairs trading tools; and context-sensitive IOIs.

Data Warehouse functionality for archiving andcentralizing security information, historical pricing,transactions, and position data for detailed reporting.

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

Eze Castle Software, LLC12 Farnsworth Street, 6th FloorBoston, MA 02210+1 [email protected]

About ConvergExs Eze Castle SoftwareEzes award-winning order management system,the Eze OMS, leverages a real-time openarchitecture to streamline the investment cycle forall asset classesfrom idea generation throughsettlement. The Eze OMS provides functionalityto support Portfolio Management, Compliance,Trading, and Operations. With nearly 400 clientsworldwide and ofces in Boston, New York,Stamford CT, San Francisco, London, and HongKong, Eze is one of the leading providers of order

management systems.ConvergEx is a premier provider of investmenttechnology solutions and global agency brokerageservices.


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Cost containment, xed-cost reduction,variable-cost reduction, and economiesof scale these are among theselling points of SunGards Global

Trading Solution*, which can help rmsdrive revenue and capitalize on newopportunities in todays challengingeconomic environment.

Widely known for its various point solutions, SunGardhas put them all together in a Global Trading Solution tocreate new opportunities for the large institutional sell-sidebroker-dealers, wholesales, and regional retail broker-dealers that comprise its customer base. The compilationof services, among other things, enables rms to rapidlytransform business concepts into revenue-generating

business lines by leapfrogging the typical cumbersomeimplementation steps.

Whether rms are aiming to trade new asset classes orcross international borders, SunGard helps them do soquickly and easily says Ralston Roberts, SVP, productmanagement, SunGard Trading. Leveraging technologyalready active in Europe and Asia, the Global TradingSolution is now available in the United States. Robertsdiscusses how leveraging this full offering helps rmssource more revenue, reduce operating costs, and staycompliant as markets change.

With the economy and brokerage communityin massive transition, what opportunities canSunGard provide?The SunGard Global Trading Solution extends our ability tohelp customers grow revenues by expanding their currentasset class coverage while minimizing costs and maintainingregulatory compliance. This is accomplished, in part, byconsolidating multiple and disparate technology platforms.

One of our customers greatest difculties is enteringinto new markets and business lines while controlling

costs. The solution that were putting forward helpscustomers enter into new markets and new businesseseasily without increasing their costs. And also helps themachieve and maintain compliance with regulatory rules

across the different lines. For example, we have Brazilianbroker dealer customers that want to provide their buy-side customers with access to Latin American and UScash equity and derivatives markets. They white label ourbuy-side EMS to their customers desktops, they use ourtrading tools to trade high-touch order ow, and they haveSunGard centralized pre- and post-trade risk monitoringand position reporting tools to manage r isk across allmarkets and asset classes.

How do your services translate into increasedrevenue for your customers?

Once rms decide to enter into a new business, they wantto implement quickly so they dont miss the opportunity.We help them monetize their ideas a lot faster. A typicalsix-month project can be reduced to a month or less. Forexample, we had an existing US broker-dealer customerwho wanted to trade in Mexico. Through our OMS,connectivity and broker network, they could start tradingwithin a week.

Theres a unique opportunity right now in the U.S.marketplace for rms that havent been in the globaltrading space to get into it. Traditionally a handful of

brokers facilitated that business, but buy-side customersare reallocating commission dollarsa result of the creditcrunch and other changes that have taken place in recentyears. That leaves an opportunity for certain types of rmsto capture more business.

The problem is that signicant up-front costs exist. Weprovide an easy way for small to medium broker-dealers todo it cost-effectively. Now they can facilitate that businessby leveraging our applications, either from a direct marketaccess (DMA) perspective to their clients or from a high-touch perspective at their desk.

SunGards Global Access Helps

Firms Expand Revenue withoutExpanding Overhead

Ralston Roberts SVP, pr oduct management,SunGard Trading


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Another difculty is execution. When expanding into newmarkets where a rm isnt a member or doesnt haveexpertise, how are they going to facilitate that business?Through SunGards brokers and broker network, rms can

establish multi market global relationships that can help getthem execute customer ow across assets and globally.

What, if anything, distinguishes this service fromother offerings?SunGard has a particularly broad and deep range ofservices. Our Global Trading Solution includes a multi-asset order management system with built in executionmanagement capabilities. It also has a sponsored brokermodel that gives our customers access to brokers andbuy-side rms worldwide, including emerging marketssuch as Brazil and India. We facilitate orders in cash

equities, options, and futures to more than 150 exchangesaround the world. SunGard also provides advancedexecution, smart-order routing, clearing and settlement,market data and market data/news terminals.

Our technology platform enables us to handle all this in avery timely and cost efcient manner. Once rms becomea customer, we can essentially ip a switch to turn onnew services. By contracting with us for multiple services,rms eliminate and condense such time-consuming tasksas systems implementation, identifying and implementingproper risk controls, installation at client sites, building

back-ofce clearing interfaces and reporting on positionsby customer, trader and ofce across the globe andmultiple asset classes.

Once rms begin working with us and have implementeda part of the solution, expansion is easy.

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 canhelp rms reduce the number of touch points in the tradelife cycle, resulting in a lower blended cost per trade

and potential improved performance. Firms benet fromeconomies of scale with us because its the same supportpeople, its the same operations people, its the same datacenter footprint, and the same connectivity. Expanding

current products and services with SunGard reduces yourtotal expense for adding additional businesses, which helpsdrive protability amid margin compression. As a specicexample, many of our broker-dealer customers use our OMSand our institutional trading compliance tool together. Now,they have one data store for orders, trades, and tick datarather than multiple stores, reducing technology costs and,more importantly, improving the comprehensiveness andresponsiveness 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 toquestions and issues meet customer expectations andmaking sure we answer all questions quickly and visit ourcustomers regularly to hear their wants and needs rsthand.Our continual objective is to deliver support and servicethat ensures customers are up-to-date on the functionalityavailable to them, and have a voice in future functionality.

Our customer-centric approach benets not onlycustomers but also SunGard. Our deeper relationshipswith customers help us develop products that are even

more effective at meeting their needs. Customer retentionis higher than ever, and existing customers are expandingtheir relationship with us.

I believe without SunGard and their technology and customer support, wewouldnt be where we are today. Weve grown by leaps and bounds in the lastve years and SunGard has been right there with us helping us grow.

Rick Petrone EVPDirector of Capital MarketsDomestic Securities Inc.

* SunGards Global Trading Solution includes but is not limited to someservices offered by GL, Brass, Protegent and Assent

Some U.S. brokerage products and services offered by Assent LLC, memberFINRA/SIPC.

SunGard Trading545 Washington Boulevard,7th FloorJersey City, NJ [email protected]


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In todays fragmented market place, having the abilityto recognize opportunities before they become fully

priced, quickly identify sources of liquidity and promptlyact on that information by instantly communicating withcounterparties is essential.

Traders must have all the tools necessary to ensure theyare not missing market indicators or trends. I t is alsoapparent that these tools must be consolidated into asingle offering that provides traders with a full view ofthe nancial picture while making optimal use of limiteddesktop real estate.

Thomson Reuters takes theseneeds very seriously. A great deal

of time and effort has been spentdening and rening a platform thatcan meet the needs of an activetrader. Using the depth and breadthof our industry leading news and

content along with powerful charting and trading tools,Thomson Reuters provides a wealth of information tomake a trading decision and then route an order forexecution. Thomson Reuters execution managementsystemReuters Trading for Exchanges (RTEx)is fully

integrated within our desktops and creates an offeringthat is more than just an EMS; it provides a transaction

enabled workstation. A cockpit from which the user canseek, nd and execute against the liquidity that residesin the market.

Simplied WorkowThomson Reuters offers one complete workow solutionthat includes comprehensive news, rich analytics, fullprice discovery and order routing with back ofce outputcapabilities, all within a single desktop.

RTEx simplies our clients trading, allowing them toroute orders to multiple brokers and receive consolidated

execution reports via the comprehensive blotter. Thedisplays can be tailored to meet users needs and theability to click to trade from any price or direction in theOrder Book creates a smooth order entry workow.

AutEx, the worlds premier order indication and advertisedtrade service, provides viewable Smart and Natural IOIsin the RTEx Blotter or via the AutEx Inbox. By double-clicking the streaming IOIs, order tickets are easily pre-populated for electronic routing.

The use of RTEx goes beyond the equity markets by

featuring spread trading tools for commodity instrumentsand Request for Quote (RFQ) capabilities. The toolsenable users to submit exchange listed spread orders andeasily view the leg constituents in the blotter. With theRFQ capabilities they can send a request for a price andquantity of a security to a specic broker, which offersthem 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

The Transaction EnabledWorkstation

With the broadening responsibilitiesthat traders face in the current nancialenvironment, it is essential that theyhave the tools to easily nd liquidityand quickly react to developing events.A simplied workow is essential fortodays active trader.


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instantly communicate with their counterparties. With theReuters Messaging (RM) icon integrated in RTEx, RM is at

their ngertips, enabling them to easily keep in touch withcounterparties using secure messages that are archivedfor compliance purposes.

Trade Execution QualityThe trade execution process is growing increasinglycomplex and the costs associated with each transactionare becoming more intricate. To be competitive and tobe compliant with regulatory obligations, it is essentialto monitor and optimize execution quality. ThomsonReuters Global TCA is a fully hosted, web-based bestexecution analytics and compliance reporting platform.

It supports detailed trade level exception reporting aswell as aggregate best execution analysis of brokers,counterparties, traders, individual trading algorithms, andother parameters of choice. The tool can automatically pulltrading activity from RTEx into Global TCA at the end ofeach trading day, offering an out-of-the-box TCA solutionfor RTEx users.

Global LiquidityAs a result of the connectivity between the ThomsonReuters Order Routing network and the Tradeweb RoutingNetwork, Thomson Reuters enables market participants

to access the broadest pool of global liquidity and to tradewithin the largest community in the world. Participantsof this global hub-and-spoke network span all developedtrading markets as well as the fastest growing emergingmarkets, including Latin America and the Middle East.Orders can be sent to any broker on the service withwhom a trading relationship exists.

For executing broker-dealers, a single FIX connectionto the network provides the reach necessary to attract

maximum order ow from users of Thomson Reutersdesktop products and leading order management systems

worldwide. With a single FIX connection, the need tomanage multiple point-to-point connections is eliminated.

Thomson Reuters provides access to the broadest pool of liquidity from around the globe, including the fast-growing emerging markets.

Tom VeneziaSVPGlobal Head of Transactions, ETIThomson Reuters

About Thomson ReutersThomson Reuters is a global information companyproviding intelligent information relevant toprofessionals in the nancial services, media andcorporate markets. Our information is trustedacross front, middle and back ofces, fuellingdecision making and automating businessprocesses around the globe. We have a reputationfor speed, accuracy and freedom from bias. Weprovide nancial institutions with tools designedto help them distribute and manage the ever-increasing volumes of market data, while managingrisk and compliance obligations. Our electronictrading services connect nancial communities,helping them gain access to the best prices andtrade efciently and effectively.

Thomson Reuters3 Times SquareNew York, NY 10036

Contact Person:Tom VeneziaSVP Global Head of Transactions, ETI+1 646 223 [email protected]


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What a difference a year can make.A year ago the electronic equity industry was generallystill predicting modest double digit growth in low touchelectronic trading revenues, the ongoing decline in the

sales trading function and equity trading continuing to bedominated by the bulge bracket brokers. Since then we haveseen unprecedented market volatility, dramatic contractionsin trading volumes, portfolio turnover and commissions, plusa wholesale reorganisation of the sell-side.

Against this backdrop the sell-side community isworking hard to broaden the range of products it deliverselectronically, in an integrated manner to clients to capturediversied revenue streams, whilst at the same timeconsidering the most cost effective way to provide usersaccess 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 thesoftware business, which for brokers, has never lookedquite so unattractive.

The buy-side has seen portfolio values and performancefall signicantly and, particularly in Europe, have had toensure they understand and seek best-execution for theirclients. And this in an environment that is seeing smallertrading sizes having to chase execution and liquidityacross increasingly fragmented markets, ranging acrossprimary exchanges, crossing networks, Multi-Lateral

Trading Facilities, plus individual and linked dark brokerpools. Keeping your head above water and navigating theexecution currents in the equity markets has never beenso challenging.

As is always the casein challenging times it is those whoreally understand and build on their core strengths, whilstchoosing the right partners to help make their businessmore efcient and effective, that will emerge stronger.

Brokers are responding to the new environment by seekingto ensure their best products, the latest algorithms,

Transaction Cost Analysis tools, cross asset executioncapabilities and prime services are fully and seamlesslyintegrated 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 thebest execution available, regardless of the stock, size orcomplexity of the order. At the same time institutions aretaking greater direct control over their trading decisionsand global execution capabilities. Why? Because by usingan EMS to its full potential traders realise they can not onlyincrease the efciency around their workow, but moreimportantly have a tool that actively contributes to theirtrading performance. As the buy-side desktop consolidates,traders are demanding access to the latest executionservices across the multiple brokers they trade with, in asingle 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, allin a single desktop.

Is my EMS multi-broker and broker neutralhow do I know?In todays arena traders want access to the trading partnersof 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 connectionsdirectly and uniquely to each broker globally on its network?Are you satised you can direct order ow to where youwant it to go, without interference or obligation? That ismulti-broker and broker neutral.

And, to help get to where you need to be you should seekclear answers from your EMS partner on the following:

How can I maximise execution opportunities withmy EMS?

Can I congure a single button to execute a stock

Are You Sure Your ExecutionManagement System Is Keeping Up?A Revolution Is Occurring In Electronic Trading Technology And Traders WithAccess To A Reference EMS Will Have A Competitive Edge


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A S l t t T d M g i P d d b S M di C t S l ti 61

using an algorithmic strategy with my chosenparameters?

Can I spit an order and send this simultaneously, usingvarious 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 ordersback into the EMS?

What advanced list trading features are available, toeasily modify open lists, benchmark performance andgroup orders across a variety of attributes?

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-timeexecution lls returned to both seamlessly?

For multi-broker and multi-asset class requirementsdoes the EMS offer the exibility to pre-designatebroker routes across asset classes?

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 anequity option trade to hedge a cash equity trade?

As the complexity of trading and connections acrossmarket participants increases, it is important to understandthe kind of service model that sits behind the EMS. Doesthe EMS provider have a history in leading and managingtrading technology and systems and really understandthe dedicated service level that this requiresis it in theirDNA? Do they manage their own infrastructure, datacentres, product development, client support desks andaccount management teamsall focused on delivering

the highest quality trading experience to institutionaltraders and the intermediaries that provide executionservices, proprietary research and transactional tools?

In summary, the future is here today for traders. A global,multi-broker EMS, providing access to the latest executionservices and products, from multiple brokers, acrossmultiple asset classes in a single easy to use and fullycustomisable platform. If your current EMS provider fallsshort in some of the areas discussed above, it is timeto consider making a change to a proven best of breedtechnology with a passion and understanding of thetrading environment.

by using an EMS to its full potential traders realise they have atool that actively contributes to their trading performance.Rustam LamDirector of Marketing

About RealTick

RealTick, created by Townsend Analytics, isthe electronic trading industrys premier direct-access research and trading software. RealTickdelivers real-time market data, news and analytics;sophisticated trading tools; unrivaled accessto exchanges and ECNs; and risk managementtools to institutions, broker-dealers and individualinvestors. RealTicks advanced technical design issupported by state-of-the-art data centers and aredundant network for market data and orders.

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

Company details:New YorkTownsend Analytics780 3rd Avenue, 44th FloorNew York, NY 10017+1 212 679 9000

LondonTownsend AnalyticsLevel 7One BroadgateLondon, EC2M 2QS UK+44 (0) 20 7786 [email protected]

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