What will the next 10 years hold for institutional market participants?
MarketsMedia asked CEOs of three technology providers to envision some of the big trends.
Vijay Kedia, CEO, FlexTrade
OMS & EMS (OEMS) integrations will become far more fluid, frictionless and seamless, such that the buy side will not be concerned about whether a feature belongs to an OMS or EMS. OMSs will catch up with EMSs in performance.
Already gaining momentum, fixed income trading will become far more electronic with growth in CLOBs, liquidity-seeking algorithms, dark pools, and blotter scraping.
Traders today specialize in specific asset classes such as equities, FX or fixed income. Continued advancement in the multi-asset EMS will empower traders to be multi-asset experts, bringing down the walls between traders, desks and technology separated by asset class.
The EMS will become the primary information hub for traders. They will offer on-demand integration of external data sources, be it third-party real-time research, social-media generated information, or trading signals and intelligence provided by experts and quants on a subscription basis. Vendors that embrace an open architecture and are agnostic to integrating external APIs will be clear winners.
Augmented reality will enable traders to be far more impactful and aware of a broad range of information, scenarios and real-time events.
TCA, which today plays a fringe role in trying to shave fractions of basis points via pre-trade and post-trade transaction analysis, will advance deeper into OEMS integrations and result in a multi-basis-points performance impact.
AlgoWheel technology will significantly advance to become the most critical and meaningful component of the EMS. AlgoWheel will take the emotion and bias out of the trading process leading to a quantifiable, systematic, consistent and continuously improving trading process.
Generic technology advancements such as AI, machine learning, virtual assistants, cloud computing as well as other not yet known advancements will accelerate and empower all of the above.
Investments in OMS & EMS technologies over the past 20 years have created the foundation to build the truly exciting developments that lie ahead!