In February I discussed the concept of OMS vendors providing direct access or point-to-point services in trading between banks and customers in Fixed Income.

Since then there has been little development in this space and indeed corporate actions like LatentZero being taken over by Fidessa will no doubt delay matters further.

A banking friend of mine was and remains a huge believer in this. They think it benefits both sides by providing a more discrete service than via an ECN. Essentially a bank will be more inclined to price better and thus a client will benefit.

As I said in my Fenbruary piece I can understand the benefits for non-vanilla product but not for the likes of Euro Govies. My friend disagrees. They believe it is good for all. The OMS will aggregate the feeds and essentially replicate a multi-dealer price discovery GUI…….this is where we disagree….why bother if you already have an ECN doing that and can integrate it with your OMS? She felt that it would mean more sizable trades moving electronic….perhaps.

Anyhow, it seems to be stalled and I truly think these OMS vendors should concentrate more on delivering a module that handles OTC derivatives such as Swaps and CDS. This is what I’ve heard a number of their clients ask for. But what do clients know? 😉

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