Back to Basics: What is an Order Management System (OMS)?
We are excited to be sponsoring the 2014 EzeSoft Client Conference later this week in Boston. For those of you who aren’t familiar, Eze Software Group is the owner of the order management system, Eze OMS, which is frequently used by hedge funds and asset managers across the globe.
As a preview to this week’s conference, we thought we’d dial it back to basics a little and explain exactly what an order management system is and why it’s a critical piece of software for many investment management firms today.
What is an OMS?
An order management system is a “software-based platform that facilitates and manages the order execution of securities.” Used on both the buy-side and sell-side, an OMS allows firms to manage the lifecycle of their trades and automate and streamline investments across their portfolios. OMS platforms typically run on FIX Protocol, linking hedge funds and investment firms to hundreds of counterparties around the globe.
In November 2013, Eze Castle Integration revealed the results of its annual Global Benchmark Study, which highlights the top vendors and applications used by investment firms worldwide. Results showed that Eze OMS was the preferred order management system for most firms, with 42% of respondents indicating it was their current OMS platform. Download the full 2013 Global Hedge Fund Benchmark Study here.
According to Eze Software Group, some of the benefits firms can achieve from an order management system include:
Managing orders, allocations and executions across asset classes from a single platform
Automating pre-, intra- and post-trade compliance checks
Monitoring real-time P&L and exposure
Track and report on the full lifecycle of a firm’s orders
Eze Castle Integration regularly consults with clients about their software and application needs and provides guidance on the appropriate infrastructure necessary to host those systems. If you would like to speak with a technology representative about your firm's unique needs, please contact us.
Sources: Wikipedia, Eze Software Group