The lessons of the last fifteen years show us that as markets evolve, technology must evolve with them.
In the past, investment firms mainly relied on two distinct front-office technologies: the OMS and the EMS. Technology vendors developed these solutions to give users robust features and functionality to support their roles.
But no matter how well these technologies supported their specific functions, neither provided users with insight into what was happening beyond their screen in other parts of the firm. Without this insight, users lacked confidence in how their orders were processed or where the firm stood at any given time.
That's where the unified OEMS comes in.
In this post, I examine how the front-office confidence instilled by a unified OEMS impacts an investment firm's employees and operations.
The OEMS: A Unified Investment Technology to Confidently Manage Investment Firm Operations
Too slow and often prone to errors, “swiveling” between an OMS and EMS meant firms could not keep up with demands for speed, accuracy, and compliance created by market forces and regulations.
That’s why investment firms began to move away from these siloed systems in favor of the OEMS.
The unified OEMS brings together a firm’s entire front office, as well as enhances visibility across teams and the accuracy of downstream operations. In this unified system, each user has more holistic insight into what is happening at any given time.
In today’s fast-moving investment landscape, users need the confidence of knowing their orders will be executed quickly and accurately.
Because the OEMS manages the trade from beginning to end, the process moves more seamlessly with less of a risk of error. A completely traceable audit trail created by the OEMS ensures firms can easily retrace their steps, all within a unified system that simplifies and enhances the investment management process.
This streamlined process helps firms keep up with the new T+1 settlement cycle and prepares them for the eventual move to T+0.
As firms expand their range of investments, they often acquire new technology to manage that asset. But as firms grapple with integrating and managing a whole new system, the costs quickly increase.
A good OEMS, on the other hand, assures firms that they can seamlessly manage and incorporate that new asset class into the operation.
This type of solution supports all asset types, handling the unique requirements of new instruments while offering continuity in the look, feel, and institutional-level performance and compliance firms require when trading less traditional asset classes.
This flexibility and continuity provide the firm confidence that new asset classes can be introduced without risk. With this assurance, the firm is not just enabled but empowered to expand its range of asset classes in the future.
Changing requirements and heightened investor expectations keep compliance at the top of the investment firm’s list of concerns.
Historically, the OMS handled the more complex position-level compliance, while the EMS handled simpler compliance needs like restrictions. When trading out of the EMS directly, compliance checks were not as thorough.
The unified OEMS addresses those concerns, providing holistic compliance across all asset classes and investment strategies without interrupting the workflow.
Once a trader issues an order, they are confident that the OEMS compliance engine will apply its rules and logic throughout the trade lifecycle – even if the order gets modified along the way.
With the strong compliance of a unified OEMS in the front office, compliance checks and reporting are streamlined. This not only ensures regulatory adherence but also simplifies the work of the middle- and back-office.
When the firm’s front office team is required to switch between systems, their workload increases, and they manage a heightened risk of errors. Over time, this combination can lead to stress and even burnout within the team.
By freeing up time and reducing the potential for errors, the OEMS gives a firm’s employees more confidence in their day-to-days.
Because the entire front-office team is working within one system, cross-collaboration is greatly enhanced. There is less chance of communication breakdown on trading ideas and operational items. Orders flow smoothly, and time-consuming, costly errors are also reduced.
By eliminating the need to juggle multiple platforms or troubleshoot errors, the OEMS empowers employees to redirect their time towards more rewarding, revenue-generating activities.
A Technology Partner Firms Can Feel Confident With – For Today and the Future
The efficiency and accuracy created by the OEMS – combined with SS&C’s industry-leading support and service – do more than improve efficiency: they give investment firms greater confidence in their front-office operations.
To achieve this level of confidence, investment firms need a technology vendor with the technical foundation, experience, and people they can count on – not just at the start but as the firm's needs evolve over time.
From trading and compliance to cost reduction and workflow optimization, SS&C's seamless OEMS is helping users increase efficiency, decrease risk, and maintain compliance.
With over 35 years of experience, SS&C has been a reliable partner for firms looking to optimize their investment operations. Our Eze solutions, trusted by over 1,900 buy-side institutions, are not only designed to meet current needs but also to evolve with a firm’s growth, helping them to stay ahead in the market.
The company’s focus on R&D is unmatched, with over USD 110M dedicated to research and development efforts across SS&C's wealth and investment technology solutions annually.
Our client-first approach to service extends to every touch point, and with over 500 service experts worldwide, there is always someone available to answer the call within minutes, not days.
Discover how SS&C's technology can give your firm the confidence to achieve its investment and organizational goals, both now and in the future.
Dive deeper into how to bring your OEMS technology together to increase efficiency, decrease risk, and maintain compliance in this eBook.