Research Note: Global Order & Execution Management Systems (OEMS)
SaaS & OEMS
The global software-as-a-service (SaaS) market size was valued at $261.15 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.7% from 2023 to 2030, reaching $829.34 billion by 2031. The continued rise in public cloud services adoption across enterprises is one of the major factors driving the SaaS market growth. The integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) has further enhanced the capabilities of SaaS solutions, enabling businesses to improve productivity, efficiency, and decision-making. The increasing demand for cloud-based applications and the need for cost-effective, scalable, and flexible software deployment have also been key drivers of the SaaS market's expansion. Additionally, the COVID-19 pandemic has accelerated the adoption of remote work and online collaboration tools, further fueling the growth of the SaaS industry.
The global order and execution management systems (OEMS) market, which provides SaaS-based trading and order management capabilities, is projected to be a significant part of the overall SaaS market growth. Industry analysts estimate the OEMS segment will grow at a CAGR of over 15% from 2023 to 2030, driven by the increasing demand from financial institutions for integrated, cloud-based trading platforms. The ability of OEMS solutions to streamline order management, enhance execution quality, and provide real-time analytics has made them an attractive proposition for both large enterprises and smaller trading firms looking to modernize their technology stacks. Leading SaaS OEMS providers are investing heavily in expanding their connectivity to global liquidity venues and developing advanced features powered by artificial intelligence and machine learning. As the financial industry continues its shift towards cloud-based infrastructure, the SaaS OEMS market is poised to capture a larger share of the overall trading technology spend in the coming years.
Charles River
As a leading provider of investment management technology, Charles River delivers a unified, integrated platform that streamlines your firm's front, middle, and back-office operations. By seamlessly connecting the order management system, execution management system, portfolio management, and risk analytics capabilities into a single, cohesive solution, Charles River empowers your organization to gain a holistic view of your investment activities. This level of integration enables enhanced data flow, reduced operational risk, and more informed decision-making, allowing your team to focus on generating superior investment results for your clients. Complementing the platform's comprehensive functionalities, Charles River's advanced execution management features, including broad access to global liquidity venues and sophisticated order routing, give your firm a distinct edge in delivering best execution and optimal trading outcomes. Furthermore, the vendor's well-integrated compliance monitoring and management tools help ensure your organization adheres to a broad range of global regulations, providing you with the confidence to navigate complex regulatory environments.
Charles River's unified, integrated investment management platform offers a comprehensive, single-source solution for streamlining the front, middle, and back-office functions of large, complex institutional investment firms. By tightly integrating the order management system, execution management system, portfolio management, and risk analytics capabilities, Charles River provides clients with a holistic view of their investment activities, enabling enhanced data flow, reduced operational risk, and more informed decision-making. The platform's advanced execution management features, including broad access to global liquidity venues and sophisticated order routing, give Charles River a distinct advantage in delivering best execution and optimal trading outcomes for clients. For organizations seeking to consolidate their technology stack and gain a truly unified perspective across the investment lifecycle, Charles River's approach is highly compelling, particularly for larger institutions with complex operational requirements. Additionally, the vendor's well-integrated compliance monitoring and management tools help ensure adherence to a broad range of global regulations, further strengthening Charles River's appeal as a strategic technology partner.
Eze Software
Eze Software's modular, flexible architecture empowers your organization to tailor its investment management technology to your specific needs and requirements. By offering its order management, execution management, and risk management solutions as independent, configurable modules, Eze provides the agility to implement systems in a phased approach or customize functionality to align with your firm's unique business processes. This modularity is particularly valuable for smaller to mid-sized investment managers, as it allows you to selectively deploy the capabilities that are most critical to your operations, rather than investing in a one-size-fits-all platform. Furthermore, Eze's comprehensive compliance tools, designed to help you adhere to a broad range of global regulations, can be a significant differentiator, especially for organizations operating in highly regulated industries or across multiple jurisdictions. The vendor's ability to provide granular control and customization over compliance monitoring and management can give your firm a strategic advantage in navigating complex regulatory environments.
Eze Software offers an approach to investment management technology that can be tailored to meet the specific needs of your organization. With the ability to deploy its order management, execution management, and risk management solutions independently, Eze provides the agility to implement systems in a phased manner or customize functionality to your unique requirements. The vendor's comprehensive compliance capabilities are particularly well-suited for firms operating in highly regulated industries or across multiple jurisdictions, offering granular control and customization. While the lack of tight integration between Eze's modules may present some challenges in terms of data management and operational efficiency, the platform's overall flexibility can be advantageous for smaller to mid-sized investment management firms seeking a more customizable technology stack. Ultimately, Eze Software's modular architecture and compliance-focused tools make it an appealing choice for organizations prioritizing adaptability and regulatory adherence over a completely unified, end-to-end investment management platform.
Comparison
“Charles River’s approach of embedding risk management functionalities within its broader investment management platform sets it apart. This integrated approach provides clients with a unified view of their risk exposure, enabling them to make more informed decisions and quickly respond to market changes.”
Charles River's unified platform excels in its ability to streamline the investment management process across the front, middle, and back office. By seamlessly integrating the order management system, execution management system, portfolio management, and risk analytics, Charles River provides clients with a comprehensive, single-source solution. This level of integration enables better data flow, reduced operational risk, and enhanced decision-making capabilities. Firms seeking to consolidate their systems and gain a holistic view of their investment activities will find Charles River's approach highly appealing. Additionally, the platform's advanced execution management features, including broad access to global liquidity venues and sophisticated order routing, give Charles River a distinct edge in delivering best execution for clients.
In contrast, Eze Software takes a more modular approach, offering its order management, execution management, and risk management functionalities as separate, independent components. This flexibility may appeal to firms with specific requirements or those looking to implement solutions in a phased manner. However, the lack of tight integration between Eze's modules can lead to increased complexity in data management, system maintenance, and overall operational efficiency. Firms prioritizing a unified technology stack and a streamlined investment workflow may find Eze's architecture less compelling than Charles River's integrated platform.
One area where Eze Software stands out is its compliance capabilities. The vendor's compliance monitoring and management tools are recognized for their comprehensiveness, helping clients adhere to a broad range of global regulations. While Charles River also offers robust compliance features, Eze's solutions may provide more granular control and customization for firms with unique compliance requirements. This can be particularly valuable for organizations operating in highly regulated industries or across multiple jurisdictions.
When it comes to risk analytics, both Charles River and Eze Software offer sophisticated capabilities. However, Charles River's approach of embedding risk management functionalities within its broader investment management platform sets it apart. This integrated approach provides clients with a unified view of their risk exposure, enabling them to make more informed decisions and quickly respond to market changes. Eze's standalone risk management modules, while still highly capable, may require more integration effort to achieve a similar level of synergy across the investment lifecycle.
When to consider Eze Software:
Eze Software is well-suited for firms seeking a more modular and flexible technology approach to investment management. The vendor's ability to deploy its order management, execution management, and risk management solutions independently can be advantageous for organizations with specific requirements or those looking to implement solutions in a phased manner. Additionally, Eze's comprehensive compliance capabilities make it an attractive option for firms operating in highly regulated industries or across multiple jurisdictions, as the vendor's tools provide granular control and customization. Smaller to mid-sized investment management firms, or those with less complex operations, may find Eze's modular architecture and tailored compliance features better aligned with their needs.
When to consider Charles River
Charles River's unified, integrated investment management platform is particularly well-suited for larger, more complex institutional investors. The vendor's ability to seamlessly connect the order management system, execution management system, portfolio management, and risk analytics into a single, cohesive solution provides clients with a holistic view of their investment activities, enabling better data flow, reduced operational risk, and enhanced decision-making. Firms seeking to consolidate their technology stack and gain a comprehensive understanding of their investment process will find Charles River's approach highly compelling. Additionally, the platform's advanced execution management capabilities, including broad access to global liquidity venues and sophisticated order routing, make it an attractive choice for organizations focusing on best execution and optimal trading outcomes.