By Medan Gabbay, CRO at Quod Financial
Order and Execution Management Systems (OEMS) are the most critical components for every sell side trading operation. But despite this, the industry has seen a noticeable lack of real innovation in this space. For sure we have seen better and faster algos, but the core function of maintaining state, routing orders for execution and sending the results back to buy-side clients really hasn’t changed. So much so that many market participants view their OEMS as little more than glorified Excel spreadsheets—outdated, inflexible, and impossible to change. Yet, with the abundance of cutting-edge technology available today, why are firms still hesitant to modernize? The answer is simple: it’s not the technology that’s holding them back—it’s mindset, entrenched process, and resistance to change.
Capital markets are at their most competitive in 2025. Look at how Citadel is looking to shake up Fixed Income trading in Europe just as they and their kind did in equity markets globally [Citadel Securities aims to become ‘material player’ in Eurozone bond trading]. But, worse of all, some traders see that navigating the inefficiencies of multiple screens, accepting dreadful UXs, and copy-pasting between them is actually their job. For operations teams, it’s even worse – papering over cracks, fixing problems that shouldn’t happen, or having to ruefully tell traders, “Well, that’s just how it is”.
So, for brokerage and sell-side firms looking to stay relevant, this legacy mindset has to change. Familiarity and perceived reliability can become a bigger barrier to progress and innovation than the platforms themselves.
Comfort, while convenient, comes at a cost.
The buy-sides are under their own pressures to get the best possible execution outcomes and are more and more discerning about what their brokers truly offer. Just like in our daily lives, everything sits on top of technology and, for sell-side firms, that technology layer is always their OMS.
“I’m happy with how I do things now.” – You
This sentiment, heard all too often, reveals an underlying issue, a fear of change. In both business and life, standing still is never an option. Technology, when embraced, serves as a catalyst for positive change—enabling automation, reducing errors, and enhancing overall service quality. The reluctance to move away from legacy systems is understandable; change can be challenging. However, those growing pains are essential to staying relevant in an increasingly competitive landscape. Clinging to outdated systems might feel comfortable, but it’s holding firms back from achieving operational excellence and, ultimately, ceding competitive edge to their competitors.
How to rethink your processes?
Sometimes, meaningful change starts with a simple question: Why are we doing it this way? In many sell-side firms, long-standing processes remain untouched—unchallenged for over a decade. The reality is that technology offers an opportunity to break these shackles and reform processes that no longer align with trading today. By reassessing workflows and embracing automation, firms can unlock significant efficiencies that were previously unimaginable.
Take data automation, for example. With the right OMS in place, firms can achieve real-time instrument creation as soon as an order arrives, eliminating the need for manual static data entry. This shift not only reduces the risk of rejected orders but also ensures seamless trading across any instrument, in any market, without human intervention.
Similarly, process automation introduces intelligent solutions like Algo Wheels, Broker and Destination Choosers, and compliance automation. These capabilities empower firms to handle incoming orders with precision and flexibility, turning what was once a rigid process into a dynamic, rules-based workflow.
For traders, by traders
Speed and efficiency have also seen a dramatic transformation with modern OEMS solutions. Built by traders for traders, today’s systems are designed to remove the frustration of duplicate actions, unnecessary clicks, and missing functionality—elements that have long plagued legacy systems. The focus is now on intuitive workflows that allow traders to execute with confidence and speed, without being bogged down by system inefficiency.
Moreover, integrations have become a critical component in delivering competitive advantages. A modern OMS enables seamless connectivity across the trading ecosystem, incorporating research, Transaction Cost Analysis (TCA), and real-time position monitoring and client interaction. In today’s fast-paced environment, any delay or lack of access to crucial data is not just an inconvenience—it’s an operational cost that hinders effective decision-making and, ultimately, the success and growth of your firm.
Tolerance for pain
Despite the technology available, many firms continue to tolerate inefficiency simply because they have become accustomed to the daily pain of working within the constraints of legacy systems. However, the hidden costs are substantial—whether in terms of wasted time, higher risk, increased operational effort, or missed opportunities in client acquisition and retention. The reality is that if a process is difficult, it will either happen less frequently or, worse, not at all. Addressing these challenges head-on with an upgraded OMS is not just about keeping up; it’s about staying ahead.
The Cost of Delaying Change
You already know these challenges all too well — grappling with outdated systems day in and day out. So, what truly drives change? Why does the decision to modernize always get pushed to the next year, the next budget cycle?
At Quod Financial, we believe the hesitation stems from the lack of a clear, viable alternative—one that doesn’t just replace legacy systems but redefines the way sell-side trading is managed. Our platform is built to bridge the gap between established workflows and the future of trading, offering the flexibility, automation, and innovation needed to transform your desk. This commitment to progress is at the core of our product—and our firm’s mindset.
