SimCorp and TS Ally for OEMS Offering

SimCorp and TS, formerly TradingScreen, have integrated the Dimension platform and the TradeSmart execution management system (EMS) via FIX connectivity, effectively creating an order and execution management system (OEMS) that still exists as two separate products.

The OEMS space is fairly saturated already, with big names such as Bloomberg, Charles River and others dominating the space. However, Matthew Reid, order management system (OMS) product manager at SimCorp, tells WatersTechnology that the combination of the two vendors’ technical expertise offers something different.

“There are a number of OEMS providers in the market but this is the first time two market-leading entities have come together to transform the OEMS experience by addressing some of the biggest pain points with the existing offering,” he says. “Slow order entries, data-sharing issues, and lack of straight-through processing are just some of the daily challenges faced by traders and portfolio managers—all of which increase operational risk and decrease transparency and productivity.”

With enhanced audit trail and reporting requirements coming soon thanks to the implementation of the revised Markets in Financial Instruments Directive (Mifid II) in January 2018, buy-side firms are increasingly looking toward integrated solutions that have prompted vendors such as Eze Software Group to either combine their existing OMS and EMS workflows, or to ally with rivals, as in this case.

“This new alliance delivers a true front-to-back OEMS solution, which enables the buy side to effectively manage not only trading and operations but also reporting, transaction-cost analysis (TCA) and regulatory requirements,” says Reid. “In this way, it is different from a traditional OEMS, acting instead as a central repository for trading data and reporting, satisfying Mifid II requirements and simplifying the workflow in the front office.”

They will be available to mutual clients of the two vendors rather than as a standalone product, with SimCorp clients gaining access to execution for equities, futures and options, and foreign exchange via FIX connectivity to TradeSmart, while Dimension continues to handle fixed income and over-the-counter (OTC) derivatives.

Reid says the partnership began through SimCorp’s network of partner companies, which it uses to enhance its own offerings with connectivity or algorithms.

“TradingScreen stood out particularly for their cross-asset coverage, in line with our own SimCorp Dimension platform,” he says. “They’re also regarded as experts in software-as-a-service (SaaS)-based technology, which means fast and reliable implementation timeframes for our clients.”

He adds that the linked workflows are ready now, and have already been tested with a client.