Order Management System Search and Selection
The client is an investment management firm that primarily manages equity funds, separate accounts, thousands of high net worth accounts, and provides subadvisory services. The client’s equity division trades around the world from the Chicago offices for 20 hours a day. The client had purchased ITG XIP (known as MacGregor at the time) in 2004 and implemented it with major issues until 2006. In 2012, the client purchased ITG Compliance and was disappointed with a two-year implementation that led to data synching issues between ITG XIP and ITG Compliance. The client engaged Cutter Associates to perform the search and selection of a new OMS because of our deep experience, knowledge, and established relationships with the top order management solutions.
Cutter Solution
First, we conducted a structured OMS current state analysis by interviewing client staff in Portfolio Management, Trading, Account Management, Data Management, Compliance and Technology to understand the client’s business requirements.
With our proprietary, time-tested OMS RFI template and Cutter Research library, Cutter quickly created a comprehensive, custom RFI that met the client’s distinct requirements in the first month of project. We distributed that RFI to select OMS vendors. Because of our experience with numerous OMS search and selection engagements, we were able to quickly review, evaluate, and score the vendor’s RFI responses and recommended vendors for a shortlist to be invited to demo their solutions. We compared the vendor responses results with previous engagements to validate and identify changes in vendor functionality and market share. We also reviewed the chosen solutions compatibility with the client’s EMS.
We created custom scripts for the demonstrations and managed the process for the client and vendors to ensure that the demos provided the most meaningful demos and client interactions. We then facilitated day-long demonstrations of the three finalists with up to 50 client staff, and scored the results. Two vendors were then invited to return for more comprehensive assessments, requiring them to observe the daily activity from 6 a.m. to 2 a.m. and then demo again over two days.
With consensus established for the chosen solution, we performed comprehensive due diligence, including lea
ding reference calls with Cutter members who use the finalists’ products. Finally, we performed initial contract reviews and supported the contract process.
Our in-depth product and market knowledge meant Cutter Associates were well-positioned to educate the client project team on industry trends, OMS functionality, and the unquantifiable strengths and weaknesses of each product. Cutter kept the project moving to a successful result even when faced with stumbling blocks such as the departure of the Executive Sponsor.
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