The TRADE 77 - Q3 2023 | Page 70

[ S U R V E Y | E X E C U T I O N M A N A G E M E N T S Y S T E M S ]

Buy-side sentiment on the up , but EMS providers are not out of the woods yet

This year ’ s results revealed higher scores across nearly all service categories , with the survey average jumping up to an impressive 5.94 in 2023 , the highest on record since the survey first launched in 2013 .

Investor concerns following the market volatility and losses of 2022 spilled over into 2023 , as apprehensions over inflation and recession remained top of mind for investors . Despite ongoing challenging market dynamics , buy-side respondents to The TRADE ’ s Execution Management Systems Survey appear in general , more satisfied with the way their EMS vendors have adapted this year , compared to 2022 , scoring higher ratings across nearly every category . The lowest scoring service area recorded in 2023 , was ease of integration to internal systems , although the overall rating remained flat compared to last year . Buy-side firms continue to experience frustration when integrating external solutions with their internal systems , and this score is reflective of the broader changes that asset managers and hedge funds are making to their own internal operating models and systems consolidation , as well as the ongoing evolution of liquidity providers . Product development , which received the lowest score in last year ’ s survey , recorded one of the largest year-overyear increases , yet remains in the bottom two categories , suggesting EMS vendors still have plenty of room for improvement when it comes to solution enhancements .

The 2023 edition of The TRADE ’ s EMS Survey highlights improved satisfaction traders and other buy-side respondents have had with their providers over the past year , as scores bounce back from the declines recorded in 2022 . This year ’ s results revealed higher scores across nearly all service categories , with the survey average jumping up to an impressive 5.94 in 2023 , 14 basis points higher than last year ’ s average of 5.80 and the highest on record since the survey first launched in 2013 .
Figure 1 shows the scores
70 // TheTRADE // Q3 2023