MiFID demands increased efficiencies in pre-trade transparency and best execution, forcing major changes in dealing functions. As a pre-cursor for MiFID and best execution, Investmaster, the UK's largest supplier of integrated systems for wealth managers and private client brokers, is launching a new order management and routing system, OMR2, to handle multi-channel and multi-market transactions and introducing direct SETS order book access.
The dawn of MiFID will force investment managers to demonstrate access to a range of counterparties to provide the best execution service. Meeting these needs, OMR2 connects to all three UK Retail Service Provider (RSP) gateways - Proquote, LSE and Thomsons - offering an unparalleled number of counterparties for electronic trading. The flexible, real-time OMR2 can also add new RSP counterparties in a couple of days, so that access to new RSPs is both quicker and more efficient.
The instant RSP access and web browser-based order input streamlines multi-channel and multi-market transactions, whilst also providing a direct SETS order book interface. Interfaces eliminate the need to re-key into the back office - providing flexible, full front and back office integration and dramatically reducing costly trading errors.
The strong demand for a MiFID solution has already seen OMR2 successfully rolled out, with customers reaping rewards from a more cost effective downstream settlement process with higher matching rates.
Tom Brady, CEO of Investmaster comments: "We wanted to provide a solution to make customers 'MiFID prepared'. Even though the final requirements of the directive are not known, it will make it crucial for firms to have a wide enough range of counterparties to prove best execution service for clients.
"With OMR2 , our customers will have access to all the connectivity necessary to meet the expected legislative requirements. It will also provide them with tools such as pre-trade vetting that takes account of client cash and stock positions in a way which enables the compliance function to audit and review as well as automatically routing orders to different dealing desks based on stock type."
"The fact that it is able to capture orders from a variety of sources, including portfolio managers, the internet and call centres will provide a centralised dealing function that is highly controllable. Tools such as these and automatic routing of vettitting failed orders will help to take the pain out of MiFID and ease the administration burdens between front and back office, offering true straight through processing."