Tag Archives: omex systems

FinTech-Wall Street Wonks v. Silicon Valley Socializers

MarketsMuse special update-courtesy of MarketsMedia reporting with a refreshing reprieve from all-things Greece …While Silicon Valley salivates over the next social media-powered “Unicorn”, the global financial industry is fixated on FinTech. Just like the litany of aspiring app companies accelerating the ‘next great idea’ produced by West Coast Wonks, as noted in today’s coverage by the Wall Street-focused, tech-centric media platform, MarketsMedia.com, financial-technology startups need capital to turn their idea into a viable business, and more important in most cases, they need the right strategic advice to operate, expand and then potentially merge or sell the enterprise.

Venture capitalists and angel investors can provide initial funding; consultants can help with operations; investment banks can arrange additional capital raises and advise on M&A. SenaHill Partners is unique in that it has stitched together all that is needed over the ‘fintech’ lifecycle.

Our merchant-banking value proposition connects the dots at every strategic level between global financial institutions and the entrepreneurial innovators of financial technology,” SenaHill Managing Partner and Co-Founder Justin Brownhill told Markets Media in a June 29 telephone interview. “We feel that we can get the right ideas in front of the right people better than anyone else. That’s the mission of our organization.”

Neil DeSena, Senahill Partners
Neil DeSena, Senahill Partners

As profiled by MarketsMedia.com, New York-based SenaHill, founded in 2013 by Wall Street veterans Neil DeSena and Brownhill, offers principal investing via its SenaHill Investment Group, LLC unit, and investment banking through SenaHill Advisors, LLC.

Wall Street is a relationship-driven business, a fact that is not lost on SenaHill. The company splits its formidable roster of talent into two categories: active advisors, formerly top people in the financial industry who can help startup and emerging fintech companies get the right exposure and introductions; and inactive advisors, who provide guidance, insight and background from their current positions in the industry.

SenaHill’s advisors include Stanley Young, formerly the chief executive officer of NYSE Technologies; David Ogg, CEO and founder of Ogg Trading; Joseph Wald, CEO of Clearpool Group; Sam Ruiz, an independent advisor and former head of equities trading at Nomura; and Craig Marshall, a start-up vet who is credited with creating the general-purpose prepaid category. Network Advisors include among others, The JLC Group, whose principal and securities industry veteran Jay Berkman has helped “connect the tag line to the bottom line” for various fintech platforms during the past two decades, including the corporate bond market’s BondNet Systems, OEMS operator OMEX Systems, insurance claims receivables management firm ViaNovus Capital, SROcalendar, the provider of “Compliance Officer-In-A-Box” solutions and KeyID, the secure messaging platform for the banking industry.

“As companies come to us, we can reach back out into the industry to these senior resources in our network and ask them about the space, the people, the product and more,” said DeSena, who headed REDI in 2000-2006, when the global multi-asset trading system was owned by Goldman Sachs.

For the full story from MarketsMedia.com, please click here

Open Outcry Options Pit Trading is Dead..Long Live Open Outcry Options Pit Trading

MarketsMuse Strike Price update profiles a “return from the past and into the future” look at what many veteran (and former) option mart floor traders had all but given up for lost thanks to the electronification and bifurcation of institutional options trading.

We’re talking about those legacy, open-outcry trading pits, one -time bastions for burly and sharp-elbowed boys from Brooklyn and college ball-players-turned-options market makers and brokers who had reserved trading pit spots for them congregate and serve as liquidity centers for investors and upstairs traders to route and execute both small retail orders and large/complex institutional options orders. According to an article in today’s edition of the MarketsMedia.com newsletter, the options market is having a “Its Déjà vu all over again” moment.

Those who have been around for more than 15 minutes lament the fact that in recent years, those brick and mortar venues have become mere shells of their former selves and in some cases, ghost towns. The American Stock Exchange, arguably the pioneer in options pit trading, was acquired by the NYSE a few years back and is now literally a vacant lot that real estate developers hope to convert into a luxury rental and retail space. Beantown’s BOX might as well be a bowling alley, as trading via that venue is all electronic. One can hear a pin drop on the floor of the CBOE thanks to the ISE, the options market “Dominator” and a completely virtual exchange that has no physical structure other than corporate office space for their execs, and is otherwise comprised of air-conditioned warehouses patrolled by security dogs to protect rows of rack space for computer servers.

John Houlahan, OMEX Systems
John Houlahan, OMEX Systems

Noted John Houlhan, the COO of OMEX Systems, a long time, broker-favored OEMS platform (recently acquired by fintech firm Raptor Trading) and first designed exclusively for agency-only options and ETF floor brokerages operating on the AMEX and since embraced by a number of “upstairs” executing brokers, prop shops and select hedge funds, “Other than a handful of firms that were rolled up, most legacy floor brokerage firms and market-making firms turned in their trading smocks and floor badges long ago.” Added Houlahan, “The others who are relevant in the course of facilitating large block and/or complex options orders for institutional clients or hedge funds now generally operate from loft spaces in tony areas in Chicagoland, offices in various parts of Manhattan and New Jersey offices adjacent to exchange co-location areas.”

BUT WAIT! Everything you just read in that last paragraph is not entirely true; open outcry options trading floors are as relevant as ever, according to coverage from financial media firm MarketsMedia.com.. Here’s an extract from today’s edition of their newsletter, including a look at select veteran options market brokers who have lived to tell the tale… Continue reading

Broker-Neutral Trading Technology Firm Offers New Suite of Sweet DMA Tools

Below extract courtesy of Wall Street Letter, as reported by WSL staff columnist Sean Creamer

wall-street-letter-logoOMEX Systems, a provider of web-based, broker-neutral and FIX-compliant front, middle, and back office platforms for broker-dealers and buyside firms, will craft a direct market access offering to aid broker-dealers in choosing algo providers, according to John Houlahan, chief operations officer.

New York City-based OMEX , which introduced its OEMS (Order and Execution Management System) in 2009, is creating newly-enhanced functions for traders interested in setting up direct market access to allow brokerages to place and modify orders on a faster basis, noted Houlahan.

John Houlahan, OMEX Systems

“We are also building out functionality to facilitate direct market access clients via internal algorithmic parameter metrics,” said Houlahan. “We are building a DMA tool to allow broker-dealers to pick and choose various algo providers to place, modify, and monitor trades for intraday modification for cash desk, options, fixed income and futures.”

OMEX is also preparing to make its trading and execution functions available across the pond, so that global broker-dealers can have access to the offering, Houlahan said. The expansion comes on the heels of the firm being certified for use in the Mexican exchange network, he added.   Continue reading

Agency BrokerDealer Enhances Offering for ETF Multi-Basket Trading

Below courtesy of Aug 6 edition of Wall Street Letter, article written by staff reporter Sean Creamer 

wslWallachBeth to enhance multi-basket trading

 

WallachBeth Capital, a New York City-based agency brokerage, will enhance its existing portfolio and multi-basket trading in exchange-traded funds and other equities to make greater use of OMEX Systems, according to executive members of both companies.

The firm currently uses OMEX for trading in equities, including ETFs, and options, as well as critical middle and back office functionality but it will take on additional functionality from the vendor in order to propel the firm even further into multi-basket trading, according to Michael Wallach, CEO.

“What we are doing with OMEX is attempting to customize the trading technology so that we can have enhanced pre-and post-trade abilities and analytics for multiple basket orders and portfolio management,” said Wallach.

David Beth, President, WallachBeth Capital
David Beth, President, WallachBeth Capital

David Beth, President and Chief Operating Officer at WallachBeth, noted that add-ons would bolster the current system used for trading baskets.

“We are looking for state of the art analytics, coupled and bolted to the [execution management system] for pre- and post-trade analytics, as well as including the ability for traders to quickly be able to change strategies or algos during and after executing an order,” said Beth.

In preparation for this change, last month the firm hired Matthew Rowley as its chief technology officer, a veteran of Crédit Agricole and Fidessa, who will oversee the firm’s technology push and to enhance existing applications.

Wallach noted that adding this functionality won’t be burdensome, but will involve a re-routing of some client network connections.

For the full coverage, please visit the Wall Street Letter website (subscription required, but FREE TRIAL is available)

Continue reading

2014 Wall Street Letter Institutional Trading Awards Goes To..

2014 wsl award logoBreaking News..New York, NY Feb 25 Latest Update: 9.45 pm EST

At a gala financial industry awards ceremony hosted by Wall Street Letter to recognize the year’s top investment banks, institutional brokers and trading technology providers, 300 of the financial industry’s senior executives gathered tonight to salute their peers in a best-in-class competition extending across 20 categories. Thanks to tweets sent from attendees during tonight’s dinner event, MarketsMuse is first to report the following announcements midway through the evening’s program:

Tom Quigley (l) WallachBeth Capital. MD/Electronic Trading Desk
Tom Quigley (l) WallachBeth Capital. MD/Electronic Trading Desk

Spotlighting one of the most talked-about service offerings in today’s brokerage industry landscape, in the category “Best DMA Offering,” agency-only execution specialist WallachBeth Capital took home the gold, with Bloomberg’s Tradebook and Object Trading receiving honorable mentions.   WallachBeth’s electronic trading/DMA group was launched in 2013 to complement the firm’s widely-recognized ETF, Options, Delta One trade desks and healthcare sector equities research team. The firm’s trading system technology platform is powered by OEMS solutions vendor OMEX Systems.

Sunguard Financial Systems, Instinet, Wolverine Execution Services, Tethys Technol0gies, Inc, Advent Software, Interactive Brokers, ITG Inc. and Bloomberg LP‘s Tradebook were among the other top contenders in several of the 20 brokerage and technology categories.

The 2014 WSL Institutional Trading Award for “Best Broker-Dealer/Research,” a new category that combined providers of equities research and fixed income content, Newport Beach-based Mischler Financial Group was selected best-in-class in which the 2 other contenders for that top spot were Stifel Nicolaus, the BD subsidiary of Stifel Financial, and investment bank Sandler O’Neil + Partners. Mischler Financial is a full service investment bank/institutional brokerage and the securities industry’s oldest and largest minority firm owned and operated by service-disabled veterans. The firm specializes in primary debt capital markets, fixed income syndicate market commentary and operates a 24/6 global institutional equities execution platform.

At press time, the winner of WSL’s 2014 Best Broker Dealer/Client Service was in the process of being announced. Contenders for this coveted award included BNP Paribas Securities Services, Northern Trust Securities, Sunguard Financial Systems, WallachBeth Capital, Bloomberg Tradebook and Mischler Financial.

Officials of Pageant Media, Ltd., the UK-based media giant and parent of Wall Street Letter announced the official listing of winners will be available at Wall Street Letter website.

Industry’s Top Institutional Broker-Dealer and Trading Technology Vendor Awards Goes To…

wsl awardsWall Street Letter, one of the Industry’s must-read publications courtesy of financial media company Pageant Media, just announced its “short list” of finalists in connection with WSL’s 3rd Annual institutional trading awards.

While the 2014 “best of” categories  cover each of the likely specialties (e.g. best agency-broker/options, best brokerage platform, best DMA platform, best algo platform,  best technology vendor(s), best research, etc.), this year’s “bake-off of the best” includes not only the ‘likely suspects’ whose brands are burnished across the industry landscape, but a selection of boutique firms that certainly deserve a shout-out (and perhaps the trophy!), particularly when looking at those on the short list of nominees for “Best Options Trading Platform“, “Best DMA Offering”, Best Client Service-Broker/Dealer“, “Best Research-Fixed Income” and “Best Options Broker-Dealer.”

Far be it from us to front-run WSL by disclosing the full picture of front-runners; we’ll give credit where credit is due…..”And, the WSL 2014 Award nominees are (drum roll please!)…..CLICK HERE

Euro-based Bond Platform Offers RFQ Trading for ETFs; US-based OMEX Trades Ahead

etf-strategy-header-940-92  Courtesy of ETF Strategy

“..MTS, one of Europe’s largest electronic fixed income trading venues, is to launch request-for-quote (RFQ) trading for exchange-traded funds (ETFs) via its multi-dealer-to-client MTS BondVision platform.

The new service will offer liquidity providers access to a diverse community of global institutional investors.

The platform will support ETF products listed on the Borsa Italiana and London Stock Exchange, both of which are owned by the London Stock Exchange Group PLC.

By offering RFQ as a new execution method in addition to the order book trading functionality currently offered by the two exchanges, MTS is seeking to improve the efficiency of executing these products and increase trading opportunities for all market participants..”

John Houlahan, OMEX Systems
John Houlahan,OMEX Systems

Observed John Houlahan, COO of US-based OMEX Systems, the broker-neutral OEMS platform used by leading ETF, option and futures market participants, and provides direct market access to multiple exchanges and liquidity centers, “Hats off to MTS. Even if RFQ is a functionality that fixed-income players as well as institutional equity trading desks are long-accustomed to, and that some of us are already well into next-generation request functionality, from a trading technology industry “business model” angle, the underlying story is clear: niche players offering single-asset class products are kidding themselves if they think that is a sustainable model.”

Added Houlahan, a 20-year veteran of the trading technology space, “MTS certainly seems to recognize that electronic trading for all but the most liquid fixed income products is still at the early stages of evolution and large-scale user adoption. It makes sense to leverage their technology, just as equities systems vendors are now attempting to step into the bond and futures arenas. Those who can overcome not just the technological and regulatory issues, but the political and cultural nuances that distinguish the ways  various assets actually trade in secondary markets will be remembered as real pioneers.”

For the full article from ETF Strategy, please click here

Buyside Manager Adopts OMEX Systems’ Execution Platform; $850mil AUM Portfolio Strategy Firm Opts For Hands-Free, Multi-Custodian Order Routing

New York, NY, Aug 7– OMEX Systems LLC, the provider of broker-neutral DMA and OEMS technology for firms active in the equities, options and futures markets, announced that a customized version of the vendor’s OEMS platform has been implemented by Durango, CO-based Swan Wealth Advisors, the $850mil AUM risk management firm specializing in proprietary, market neutral hedging and income strategies for use by the professional investment advisor community.  The OMEX trade execution platform will serve as Swan’s primary hub for implementing and administering the firm’s options-centric strategies across multiple custodians and thousands of sub accounts.

In framing the solution that OMEX provided to its most recent buy-side onboard, Robert Swan, Director of Trading and Technology for 16-year old Swan Wealth Advisors stated, “Like other managers with similar profiles, we’ve had to bear a myriad of logistical burdens when implementing strategies in tandem across a universe of accounts domiciled at multiple custodians, with each custodian imposing different order delivery instructions for its captive clients. OMEX proved uniquely intuitive in understanding our business and delivered a solution that has streamlined our workflow in a manner that had yet been available at any price from any other vendor in the industry.” Continue reading

Managing Conflict Re: Broker-Provided Trading Systems

UBM TECH ADVANCED TRADING LOGOCourtesy of AdvancedTrading Contributor Phillipe Buhannic

Editor Note: This article is endorsed by MarketsMuse sponsor OMEX Systems, Inc.

Buy-side clients need to understand that when they trade on a broker-sponsored platform, they are paying for these systems, whether that payment comes in the form of commissions, licenses, or widened spread. Therefore, the most important thing the buy side should do is to think like a customer.

The last year’s market deterioration made things difficult for brokers, who are seeing tighter spreads, fragmented flow, smaller trade sizes, and compressed commissions. Brokers now face the most difficult operating environment in recent memory, with decreased market liquidity, increased message traffic and lower order volumes from clients.

Brokers also find themselves in an adverse situation, having over-invested in a number of areas, including their trading infrastructure, their capability to generate algorithms and their ability to process trades. Most broker’s capabilities vastly surpass the current needs of their clients.

From Bad To Worse
And just when you thought that things could not get any worse for brokers, they are now increasingly subject to regulation seeking to promote transparency. Brokers also have to deal with plan sponsors who need to justify more effectiveness in trade handling, and, more generally a buy side that wants to clear up the inherent conflict of interest of broker-sponsored platforms.

As broker-sponsored platforms face an uncertain future, sophisticated buy-side firms have to answer difficult questions about how they manage the associated risks of trading on these platforms … and whether those risks are worth taking at all.

Although broker-sponsored platforms can be conceptually acceptable, investors need to protect themselves against the risks that these systems could potentially generate, such as significant market impact, limitation of transparency and higher, undisclosed, transaction costs.

Top 10 Buy Side Concerns
Here are the the top 10 issues every buy-side trader needs to be mindful of to ensure efficient and effective trading on their broker-sponsored platforms: Continue reading