Today, fund managers are required to do more with less. Rising costs, global investor demand for sustainability and transparency, and downward fee pressures are roiling the industry and impacting business strategy.
To combat these challenges, many are moving away from cumbersome legacy technologies and actively embracing digital transformation to stand out from the competition and raise assets.
OMS providers have invested heavily in improving their solutions over the last decade. However, selecting the right technology partner to help improve operational alpha can still be challenging.
To help out, here are the three critical order management tools investment managers should consider when bringing a new OMS solution to their operations.
Investment Rules
When running models for funds with client-specific nuances, your OMS should be capable of enforcing substitution rules for those clients without requiring a completely new model. This is especially valuable when you’re managing tens, if not hundreds, of portfolios and accounts.
Additionally, several of our larger clients have investor-specific restrictions that conflict with the investment model intended for their accounts, such as a mandate prohibiting the holding of sin stocks.
If you’re looking swap one symbol for another or redistribute the market value of a group of securities across an account, investment rules apply this logic automatically. Fewer clicks give you more time to focus on generating alpha.
Smart Compliance
Having a platform that only handles basic compliance is no longer sufficient. One of the first questions to consider when implementing or switching OMS providers should be: "Does this OMS extend comprehensive pre-trade compliance to my execution platform?"
Investment managers need to be able to create compliance rules easily and quickly while tracking compliance in real-time across asset classes, ideally on a single screen. In addition to rule libraries that reflect the latest in the ever-evolving world of regulation, your OMS should allow you to build your own rules with easy-to-use, industry-standard rule templates for exposure, benchmarks, restrictions, and more.
A synchronized front office will allow you to run accurate position checks and allocation automation and maintain compliance as you trade from your EMS.
Seamless Connectivity
Interoperability and connectivity are more than just buzzwords. With the investment ecosystem model, firms can add features on the fly without having to do a massive upgrade and can make incremental changes, minimizing the disruption those upgrades could potentially cause.
This interconnectivity, powered by APIs, enables the seamless exchange of information with external counterparties, introducing new ways to work with vendors, partners, brokers, and peers.
Say, for example, that you want to run a quantitative trading platform outside of your OMS or view scenario analysis, newsfeed updates, or market intelligence without leaving your OMS. The ideal solution should allow you to unlock these capabilities through secure connectivity to partner applications.
Additionally, your OMS should offer fully synchronized, native EMS functionality to facilitate advanced trading and execution, greater access to aggregated liquidity or level II market data, and support for algo strategies as your business evolves.
Increased interoperability across the investment ecosystem also leads to improved data management. Accessing data when and how you want will empower your teams to make better-informed investment decisions and help you solve your business challenges more quickly.
Enhance Automation, Agility, and Connectivity with SS&C’s OMS
SS&C’s OMS technology provides investment managers with the tools they need to compete in challenging markets.
From its back-end infrastructure to its front-office user experience—SS&C’s OMS is built and supported by industry experts with deep knowledge of investment firm operations and front-office needs. These professionals actively listen to user feedback, embedding that insight into our technology and every client interaction.
This unique combination of expertise, cutting-edge technology, and unwavering commitment to client success sets SS&C apart. It equips investment firms with the resources they need to confidently navigate shifting market conditions.
To learn more about leveraging front-office technology to improve your firm’s automation, agility, and connectivity, SS&C's Trading Technology Buyer's Guide is your definitive resource for understanding how to apply the trading technology available to you to navigate today’s evolving markets.
Contact us to learn more about how SS&C’s OMS can help your firm improve operational alpha.
