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Choosing the right Order and Execution Management System (OEMS) provider is a critical decision for any trading firm. With most modern OEMS platforms now offering fully-hosted solutions, it’s essential to understand what that really means—and how it compares to managed models—before committing to a vendor.
At Trafix, we know the infrastructure behind your OEMS can make or break your trading operations. This guide breaks down the key components of a fully-hosted OEMS, outlines the pros and cons, and highlights the most important factors to evaluate when selecting a provider.
What is a Fully-Hosted OEMS?
A fully-hosted OEMS is a turnkey solution where the vendor provides, manages, and maintains the entire infrastructure—including servers, software, updates, integrations, and network connectivity. You don’t need to source your own servers or manage the technical stack.
By contrast, a managed OEMS requires the client to handle much of the technical burden, including procuring hardware, implementing integrations, and managing network connectivity. While this model offers more control, it typically demands higher costs and deeper in-house expertise.
| Feature | Fully-Hosted OEMS | Managed OEMS |
|---|---|---|
| Hardware & Network | Provided and maintained by vendor | Managed by the client |
| Code Updates & Releases | Handled by vendor | Client responsible or partially responsible |
| Integrations & Implementations | Fully managed by vendor | Executed by the client |
| Cost | Lower total cost of ownership | Higher due to dedicated infrastructure |
| Control | Shared environment | Full client control |
| Security | Included with solution | Chosen and managed by client |
| Support | End-to-end vendor support | Limited vendor involvement |
Why Most Trading Firms Choose a Fully-Hosted OEMS
For most firms, the benefits of a fully-hosted solution far outweigh the drawbacks. Here’s why:
Lower Resource Burden
Fully-hosted solutions require minimal internal resources. Your team doesn’t need deep infrastructure or development expertise—everything is managed by the vendor.
Cost Efficiency
Vendors can distribute infrastructure and support costs across their client base, making a fully-hosted OEMS more affordable than maintaining your own environment.
Seamless Code Updates and Releases
The right provider continuously enhances their platform to keep pace with the rapid evolution of electronic trading. You benefit from regular feature upgrades, version releases, and bug fixes—without lifting a finger.
Built-in Security and Compliance
Top-tier vendors offer robust encryption, cybersecurity, and compliance features, eliminating the need for additional service providers.
End-to-End Support
Exceptional customer support is a core differentiator at Trafix. Our dedicated team delivers fast, clear, and knowledgeable assistance across both the platform and infrastructure.
What to Look for in a Fully-Hosted OEMS Provider
Once you’ve narrowed your search to fully-hosted solutions, here are the critical components to evaluate:
Market Data Integration
Some vendors provide native market data via their own ticker plant, others license third-party feeds, and some leave it up to the client. Make sure your OEMS can accommodate your data requirements—whether native or external.
Network Connectivity
The network is everything in electronic trading. Choose a vendor with a robust network infrastructure capable of seamlessly connecting you to clients, clearing firms, third-party systems, and execution venues.
API Capabilities
The network is everything in electronic trading. Choose a vendor with a robust network infrastructure capable of seamlessly connecting you to clients, clearing firms, third-party systems, and execution venues.
- Native APIs for trading operations (place/modify/cancel orders, query positions, etc.)
- API certification for integrating third-party systems or app
Fast, Accurate Implementations
From onboarding to ongoing integrations, your provider should have a proven team ready to move fast and deliver with precision. Delays in implementation can disrupt your trading operations—speed matters.
Support that Scales with You
Look for a partner, not just a vendor. The best OEMS providers offer real-time, high-quality support from experts who understand both the platform and the trading industry.
Continuous Innovation
Your OEMS should be a strategic asset—not a static tool. Go with a vendor committed to continuous enhancement of the platform through frequent, thoughtful releases that keep you ahead of market demands.
Trafix: Your Fully-Hosted OEMS Partner
Trafix offers a powerful, fully-hosted OEMS that supports U.S. equities and options trading, robust API access, real-time market data, and world-class support. Whether you’re managing high-touch or low-touch order flow, or need flexible and customized integration with your existing systems, our platform is built to scale with your business.