06.23.2014

OMS Links Cash and Derivatives Markets

06.23.2014
Terry Flanagan

Linkages between cash and derivatives markets are being created by providers of order management systems.

Fidessa recently added access to the BrokerTec and eSpeed markets via its core platform, so that users can access futures and options exchanges as well as U.S. Treasury markets.

“We have been talking to our clients about where they wanted us to go next with our F&O platform, and they said they wanted us to extend our asset class coverage to include U.S. Treasuries, and add connectivity to the leading markets for these instruments,” said Tim Wade, head of derivatives product strategy for Fidessa. “They see the addition of more asset classes to our integrated platform as key to growing their business because they wanted to simplify their workflows globally, as well as improve transparency.”

Faced with ongoing economic and regulatory pressures, sell-side customers including FCMs are continuing to rethink their business models. FCMs could potentially find themselves in a position of connecting their clients to multiple OTC trading venues. “To date, we haven’t seen the proliferation of swap executions venues that was originally talked about,” Wade said. “Everyone is waiting to see if this is going to be something that becomes more buy-side direct, or will still be an agency workflow.”

Fidessa’s clients, especially on the F&O side, are “typically the agency clients who want an OMS,” Wade said. “That fits squarely in the FCM’s sweet spot and we’re seeing a growing demand for this from our mid-tier clients too.”

Joe Noviello, head of Nasdaq OMX eSpeed, said in a statement: “Fidessa’s expansion into US Treasuries provides access to the world’s most liquid markets for our mutual sell-side customers, increasing their trading opportunities through efficient execution on eSpeed. As client demand for multi-asset solutions increases, best in breed technology platforms, such as Fidessa, will allow FCMs to streamline functions and maximize performance.”

Featured image via Feng Yu/Dollar Photo Club

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