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(*) Each Respondent Named up to four Important Features
FIGURE 3: MOST IMPORTANT FEATURES
Feature
% of Respondents (*)
2014 2015 2016 2017
No. of Connections to Different Brokers 45.2 51.7 34.9 40.1
No. of Asset Classes Covered 28.0 21.2 24.7 29.9
No. of Direct Connections to Venues 24.8 22.0 19.1 19.1
No. of Types of Algorithms Available 33.8 22.9 26.0 25.3
Timeliness of Implementing Updates 28.0 23.7 24.7 26.2
Connectivity with Internal Systems 56.7 49.2 45.6 47.2
FIX Capabilities 14.6 21.2 14.9 15.7
Low Latency 19.1 24.6 20.9 24.1
Global Client Coverage 24.2 28.8 27.4 24.1
Post implementation Client Service 37.6 41.5 41.9 41.4
FIGURE 4: NUMBER OF PROVIDERS USED
# Providers
FIGURE 5: AVERAGE NUMBER OF PROVIDERS BY SIZE
% of Respondents
Size
Av. # Providers
2014 2015 2016 2017 1 65.1 59.3 56.3 34.0 < $0.5 Bn 1.43 1.23 1.55 1.67
2 18.9 26.3 30.7 36.0 $0.5 to $1.0 Bn 1.50 1.51 1.50 2.01
3 11.8 6.8 8.4 15.1 $1.0 to $10 Bn 1.66 1.73 1.67 1.82
4 3.0 5.1 2.8 8.8 $10 to $50 Bn 1.37 1.92 1.67 2.21
5+ 1.2 2.5 1.9 6.1 > $50 Bn 1.81 1.74 2.06 2.38
tion outcomes, as opposed to process, therefore represent
nearly three-quarters of responses. Keeping this group
happy should continue to be a priority for all providers.
Moving to the area of what clients’ value from services
being delivered, the main conclusion to be drawn is that
little changes from one year to the next. The results are
shown in Figure 3. Again the growth in relevance of the
number of broker connections could reflect concerns
about compliance, whether research or execution relat-
ed. It may also just be a reversion back to the levels of
2014/15. However, the importance of connectivity with
internal systems and on-going client support contin-
ues to show through in the returns. Core elements of a
satisfactory long term client relationship are clear and,
based on scores achieved, most providers are perform-
ing well in meeting them.
78
TheTrade
Autumn 2017
2014
2015
2016
2017
The data for the number of different EMS providers
being used is illustrated in Figure 4. The trend away
from having a single provider is pronounced and has
accelerated in 2017. Even so, among respondents only
15% indicated a definite plan to add a new EMS in
the year ahead. A far larger proportion (75%), have no
intention of adding to what they already have and the
balance are undecided. In terms of actually changing
provider, the figures are even more extreme. Less than
5% of respondents actually intend to change providers
in the coming twelve months. That may be bad news
for sales personnel within EMS providers. However the
fact that more than 81% have no intention of changing
is probably good news for most of the companies in the
industry and reflects the generally high standards to
which they perform.