So much of your firm’s success is built on the foundation of tools and resources you provide to your advisors. The more efficiently and effectively your advisors can complete daily tasks like trading execution, the more time they have to focus on building a better client experience.

One critical (and often overlooked) part of completing those tasks is the need for flexibility, which can be achieved implementing Order Management Systems (OMS) as a Service.

OMS as a Service provides complete trading functionality, offering a higher level of customization, control, and flexibility than traditional OMS solutions or TAMPs. In this blog, we explore the benefits of OMS as a Service, including why it’s a more effective solution for wealth management firms looking to differentiate themselves in the marketplace and deliver a superior A/X.

What is OMS as a Service?

OMS as a Service provides full trading functionality via the software offering of a trading platform vendor. These platforms offer the following benefits:

  • Enable firms to retain control over the look and feel of their trading processes. Rather than merely adding their logo to the interface, the higher level of customization associated with OMS as a Service offers firms much greater control over the appearance and layout of trading functionality.
  • Provide flexibility to deliver functionality into any application in a firm’s infrastructure through the use of trading APIs. Other applications such as rebalancing, financial planning or CRM software can all benefit from the free exchange of data that only APIs can provide. This can help reduce advisor frustration caused by difficulty experienced in moving from planning and analysis functionality to the trading system.
  • Offer the ability to upgrade trading applications on the schedule of the independent broker-dealer or outsource trading provider rather than that of the vendor. This assists the firm in responding to advisor requests for upgraded trading functionality on a timely basis

In addition, all the functionality of an OMS is accessible via APIs, which can be integrated into other wealth management systems. This allows a broker-dealer to fully customize the trading software within its own platform.

Why OMS as a Service Beats Hiring a TAMP (or Building an OMS)

Leveraging OMS APIs provides firms with greater control over the trading A/X and is not constrained by the vendor’s pre-defined processes. The products they offer and the trading strategies they implement serve as points of demarcation between wealth management firms. Because of these differences, OMS as a Service offers an alternative to TAMPs that can better accommodate RPM offerings.

Another plus of OMS as a Service is complete control over future UI upgrades to avoid the impact of unscheduled upgrades on advisors’ workflows. With more and more advisors working remotely, scheduling upgrades can be a tricky business. By retaining control of this process, firms can ensure that any upgrades are performed at the time that works best for the firm.

Related: How Asset Managers Can Streamline Post-Trade Processing with Co-Pilot OMS

Additionally, a new OMS can be rolled out quickly using an OMS API. In some cases, this can be done in less than 2 months, enabling firms to quickly update their trading capabilities rather than undergo a long, grueling planning and implementation process to build their own OMS.

Once an OMS API has been adopted, additional, more complex functionality can be rolled out in future phases as needed. In essence, it’s not a one-size-fits-all solution like a monolithic TAMP.

Why Building an OMS May Not be Worth the Trouble

Most companies do not have access to the necessary domain expertise to build an OMS, especially with all of the connectivity required to external trading venues and support for advanced trading features. Use of OMS as a Service removes the need to establish this expertise within a firm, with all the associated expense and staff time it would require.

Leveraging OMS as a Service provides the benefit of access to a mature product that has survived the stress testing of operating in the marketplace, which typically weeds out poor products/solutions.

While the control offered from constructing an in-house trading platform can appear attractive, the availability of mature systems that have survived under fire for years offers a less risky alternative, especially when combined with APIs that enable use of the software in a highly customized form.

Differentiation via Superior A/X

The modern trading landscape is highly complex, requiring systems to offer a wide range of functionality and asset class support to deliver the flexibility that advisors demand today. This flexibility is a core component of the advisor trading experience that the best wealth management firms know they have to deliver.

These firms are providing greater control over their trading A/X by implementing OMS as a Service. This offering allows customization of each point of the trading process. With firms across the industry fighting to attract and retain the best advisors, the ability to differentiate themselves through a customized Rep-as-PM platform with a superior A/X powered by OMS as a Service is a key factor in their success.

Equip your advisors with the tools they need to deliver great results. Explore our use cases, learn more about our trading solutions, or connect with a member of our team today.