The overall spending on EMS and OMS technology totalled $1 billion in 2006, inching closer to its expected reach of $1.2 billion by 2010.
Spending on EMS platforms accounted for 18 percent of the year’s total.
To make a profitable marketplace, EMS vendors are taking advantage of the adoption of DMA and algorithmic trading, according to a new report by Aite Group that examines the trends in the EMS vs. OMS debate. In 2006, intense competition also emerged from broker/dealers, buy-side OMS vendors and sell-side OMS vendors.
The report states that in 2007 more industry consolidation can be expected, especially as EMS vendors become more attractive. “In the end, the debate between EMS and OMS may become more of a fiction than a reality, as potential clients realize that ‘independent’ EMS vendors are harder to find than an un-conflicted broker service,” says Sang Lee, managing partner with Aite Group.