TOWERGROUP: FIXED INCOME THIRD-PARTY ORDER MANAGEMENT SYSTEMS POISED FOR ANOTHER LEAP IN 2006-2007

London, April 5, 2006 – While the technology needs of the investment management community are quick to change, new research from TowerGroup finds that recent development efforts by fixed income order management system (OMS) vendors have been even faster. Following a huge increase in third-party vendors’ fixed OMS capabilities between 2004 and 2006, TowerGroup anticipates that the market will experience another significant leap forward over the next 12 to 24 months.

Asset managers have made significant investments in fixed OMSs over the past 18 months – a trend that appears to be accelerating. Of the dozen or so vendors providing fixed income OMSs, the industry leaders offer integration with electronic venues and support for derivative products and post-trade processing. According to TowerGroup, the integration of both securities reference data and market data has also become a key requirement of the market – as well as a differentiator among providers.

A new TowerGroup report titled, “Fixed Income OMS for Asset Managers: What a Difference a Couple of Years Makes!” by Gavin Little-Gill, research area director of the Investment Management and Brokerage and Wealth Management practices at TowerGroup, looks at the drivers for adopting fixed income OMSs – including connectivity to markets, analytics, post-trade automation, portfolio compliance, operational risk and regulatory compliance, alternative investments, and data integration. The report also profiles six vendors with solutions currently installed in the top 25 asset management firms.

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