The Next-Generation OERMS... From the Eyes of a Market Leading Analyst
We were elated to read Celent's latest report on the Future of Trade Management. Like many of our peers, we actively engage Celent's esteemed analysts to understand trends they see in the alternatives market as well as to educate them on the latest and greatest happenings here at Liquid Holdings. One of our more engaging conversations over the last 12 months centered on our platform, the industry's first OERMS (order, execution and risk management system) which we first highlighted on a 2013 earnings call and again in a one of our most widely read whitepapers, Purpose-Built Technology: Modern Tools for Hunting Alpha.
As Celent eloquently stated in their report, 'the market is at the threshold of integration of OMS and EMS becoming a reality, in the form of an order, execution, and risk management system, especially since the risk and compliance requirements of market participants are increasing at present and as the buy-side continues to move to fewer platforms and a more streamlined process that allows for easier regulatory compliance'.
We could not agree more. Despite many market and regulatory pressures, the traditional trade lifecycle still includes the same core front-to-back-office activities. From front-office order management and execution flow to trade processing and reconciliation, trades move in a similar sequence as they did five years ago. More recently, though, many fund managers have started placing more emphasis on portfolio and risk analytics at the beginning of trades, looking to harness pre- and post-trade risk analytics in the front office, not only for mitigating that risk but to identify opportunities to capture alpha. Our clients have reiterated an emerging key trend - their front-office needs have evolved beyond just order and execution management systems (OEMS) to an order, execution, and risk management system (OERMS).
A purpose-built solution that provides OERMS capabilities in a single platform that lives in the cloud. It is a service that provides and empowers market-tested capabilities and unique workflows for all points in the transaction lifecycle. It can be accessed on any device through a browser-based, secure portal. And, through a single database built to scale, it acts as a single book of records for precise pricing and valuation from front-office trading and risk through investor and shadow NAV reporting to broker reconciliations. It is essentially everything that a hedge fund would need to operate a growing business.
In today's new fund reality, assessing risk is as important as order management and liquidity sourcing. When it comes to answering to investors and creating value for your business, disparate systems created for siloed functions not only slow down the business but can cost it alpha.
Above all, it is the modern alternative to Frankenstein or multiple disparate solutions, offering:
• Sub-millisecond pre-trade controls for strategy adjustment
• Real-time position and portfolio level analysis and monitoring
• Real-time risk analysis and anytime reporting, which account for the latest transactions
The OERMS concept is proactive technology that keeps hedge funds agile and competitive. Just as low-latency and complex algorithms have transformed the financial industry through speed and complexity, real-time capabilities that sync front-office trading, portfolio and risk management, anytime reporting, and broker reconciliations are the next step in trading evolution. In the hunt for alpha, a real-time OERMS with integrated pre-and post-trade risk offers unique views into opportunities for capturing profit and preventing undue loss at the early stages of execution and liquidity sourcing, as well as instant insight to adjust strategies through performance, P&L, risk, and NAV tracking.
As always we look forward to continuing the conversation with all interested parties. Fund managers that would like an in-depth view on the value a single, customizable, real-time OERMS can deliver back to the business should contact us at marketing@liquidholdings.com or 1-866-GET-LIQD.
As Celent eloquently stated in their report, 'the market is at the threshold of integration of OMS and EMS becoming a reality, in the form of an order, execution, and risk management system, especially since the risk and compliance requirements of market participants are increasing at present and as the buy-side continues to move to fewer platforms and a more streamlined process that allows for easier regulatory compliance'.
We could not agree more. Despite many market and regulatory pressures, the traditional trade lifecycle still includes the same core front-to-back-office activities. From front-office order management and execution flow to trade processing and reconciliation, trades move in a similar sequence as they did five years ago. More recently, though, many fund managers have started placing more emphasis on portfolio and risk analytics at the beginning of trades, looking to harness pre- and post-trade risk analytics in the front office, not only for mitigating that risk but to identify opportunities to capture alpha. Our clients have reiterated an emerging key trend - their front-office needs have evolved beyond just order and execution management systems (OEMS) to an order, execution, and risk management system (OERMS).
A purpose-built solution that provides OERMS capabilities in a single platform that lives in the cloud. It is a service that provides and empowers market-tested capabilities and unique workflows for all points in the transaction lifecycle. It can be accessed on any device through a browser-based, secure portal. And, through a single database built to scale, it acts as a single book of records for precise pricing and valuation from front-office trading and risk through investor and shadow NAV reporting to broker reconciliations. It is essentially everything that a hedge fund would need to operate a growing business.
In today's new fund reality, assessing risk is as important as order management and liquidity sourcing. When it comes to answering to investors and creating value for your business, disparate systems created for siloed functions not only slow down the business but can cost it alpha.
Above all, it is the modern alternative to Frankenstein or multiple disparate solutions, offering:
• Sub-millisecond pre-trade controls for strategy adjustment
• Real-time position and portfolio level analysis and monitoring
• Real-time risk analysis and anytime reporting, which account for the latest transactions
The OERMS concept is proactive technology that keeps hedge funds agile and competitive. Just as low-latency and complex algorithms have transformed the financial industry through speed and complexity, real-time capabilities that sync front-office trading, portfolio and risk management, anytime reporting, and broker reconciliations are the next step in trading evolution. In the hunt for alpha, a real-time OERMS with integrated pre-and post-trade risk offers unique views into opportunities for capturing profit and preventing undue loss at the early stages of execution and liquidity sourcing, as well as instant insight to adjust strategies through performance, P&L, risk, and NAV tracking.
As always we look forward to continuing the conversation with all interested parties. Fund managers that would like an in-depth view on the value a single, customizable, real-time OERMS can deliver back to the business should contact us at marketing@liquidholdings.com or 1-866-GET-LIQD.
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