Selecting a Fixed Income EMS: The Top 3 Questions FlexTrade is Asked Regarding Integrations 

New figures from Coalition Greenwich suggest that electronic trading accounts for almost half of investment-grade volume and 32% of high-yield volume.  With activity expected to grow further over the next few years, many desks are now evaluating EMS technology not only to handle increased order volumes flowing through the OMS, but also to support a greater share of execution moving from manual to electronic. 

As firms evaluate the role of an EMS on the buy-side fixed income desk, what naturally comes to mind is how this solution will interact with components of their existing architecture, including data feeds, third-party or proprietary OMSs, and other customized systems.  

Based on our extensive experience working with the world’s largest and most complex fixed-income trading desks to deliver technology change, we’ve identified the three most common questions firms ask about integrating with a fixed-income EMS like FlexFI.

Q1: How do I know FlexFI can integrate with my Order Management System (OMS) and other downstream systems and processes? Will I need significant development resources from my side? 

FlexFI connects to all systems and solutions, including in-house and third-party OMSs.  As a flexible, open-architecture solution, we have built bespoke integrations for clients with complex, proprietary OMSs. For third-party solutions, we maintain supported integrations via formal OMS partnerships with industry leaders such as Aladdin by BlackRock, SimCorp, and more. These partnerships deliver smoother onboarding, faster time-to-market, shared roadmaps, and an overall more consistent, functionally rich user experience and workflow between OMS and FlexFI. 

With an API-driven system like FlexFI, any EMS command can be managed through APIs rather than through multiple vendor connections. This way, the platform is connected not only upstream to the OMS layer, but also downstream to venues and brokers.  

From a resourcing perspective, FlexTrade’s solutions, including FlexFI, are supported by dedicated account management and client service teams that work closely with clients from initial implementation through to business-as-usual. This is complemented by a large, in-house global development team that enables us to support everything from small configuration changes to complex, bespoke integrations. 

Typically, this involves helping clients integrate their in-house OMS and EMS with FlexFI as a standalone product, enabling them to move beyond basic functionality and extend their existing systems to meet traders’ needs. 

This may include bringing functions traditionally handled within the OMS – such as trading limits – into the EMS, as well as relaying true street fills and other additional data. Some clients also require more advanced configurations, such as hierarchical broker mappings rather than a single mapping. 

Through close collaboration between clients and vendors, smaller enhancements or integrations can be delivered quickly, while larger initiatives can be developed collaboratively with clients and trusted third parties.  

For example, FlexTrade collaborated with a large European client to implement PRIIPS Reporting under an EU regulation for Packaged Retail and Insurance-based Investment Products. The client needed all relevant data consolidated into a single location so reports could be sent directly via FlexFI. Leveraging FlexTrade’s existing integrations and relationships with providers such as BestX, LiquidMetrix, and Virtu, the client could integrate and consolidate data from these providers, generating and sending a single, combined report. 

Q2: How robust are the integrations that FlexTrade offers, and do they go beyond staging integrations?

FlexFI maintains two levels of integration: “staging” and “API Trading.” Staging involves pulling data into existing venues and queuing orders for execution via the venue interface. API Trading integrations use more robust API connectivity, enabling users to stay within the FlexFI UI throughout the entire trade lifecycle. For external fixed-income functionality, we’ve already built several API Trading integration components within the FlexFI UI. 

For instance, FlexFI supports API trading across all major RFQ venues in the US, EMEA, and Emerging Markets, enabling users to trade seamlessly from the EMS. This includes support for full negotiation and countering across price, spread, and yield protocols, as well as RFQ initiation for both singles and lists.  Additionally, FlexFI allows our clients to act as liquidity providers on inbound all-to-all RFQs.  

To maximize the potential of the EMS, FlexTrade offers automation above these protocols using our smart order router for fixed income, FISOR. To fully benefit from an EMS perspective, that’s the differentiator to optimize efficiencies across workflows.  

The capabilities via all major venues have increased, and we work with the venues to ensure that our clients have access – and we are moving toward the unification of the UI. Assuming a venue, exchange, or partner is willing to expose their APIs, there are no technological limitations to the depth of new integrations for an independent software provider like FlexTrade. As market structure evolves, we’re seeing more fixed-income functionality exposed, pushing the boundaries of what the EMS can accomplish natively. 

Q3: How do I know FlexTrade’s integrations strategy will remain in line with my firm’s evolving requirements? 

FlexTrade takes an open, unconflicted approach to integrations. Our R&D and Client Services teams work in tandem with clients to deliver integrations with proprietary and third-party solutions across all areas of fixed-income workflow, including market-leading data and analytics providers such as ICE and trading platforms like Trumid.  We also proactively identify and evaluate emerging third-party solutions we believe could add value to the client’s workflow, such as DirectBooks or Propellant Digital.  

Our goal is to build a long-term partnership that evolves with the client’s needs and the broader, ever-evolving market structure. The same team that implements the solution remains responsible for ongoing support, ensuring continuity and a deep understanding of each client’s environment. Following go-live, this translates into a collaborative, high-touch service model in which we not only respond to client requirements but also proactively identify and recommend integrations we believe will enhance their workflows. This includes introducing relevant third-party solutions informed by our broader market view and experience with the client base. 

Clients themselves can also leverage input from the broader FlexFI client base via our Global Fixed Income Client Advisory Group – a forum to exchange ideas, share use cases, and review the roadmap, including integrations and partnerships currently in development. This gives clients early visibility into upcoming capabilities and the opportunity to shape priorities through direct feedback.  

 FlexTrade’s product isn’t developed in a vacuum–our clients actively shape it through a continuous, iterative process. 

Looking to Learn More?   

Fixed-income integrations are a constant area of innovation for FlexTrade. Highly effective integrations can deliver tangible workflow benefits with efficiency towards the overall goal of achieving best execution.  

To book a tailored session to better understand the value a fixed-income EMS can bring to your trading desk, please get in touch with me: Michael.Kovach@FlexTrade.com