Execution Management System (EMS)

Execution management systems (EMSs) are desktop software applications that provide access to trading venues, including multiple broker counterparties. Usually, they place a layer of intelligence over this access, containing features such as a variety of broker algorithms, market data and predictive technology. Some broker/dealers provide their own proprietary EMS capabilities but increasingly independent multi-broker offerings are being adopted by leading buy-side traders. EMS users tend to be traders who work directly with broker/dealer counterparties, other traders and automated transaction networks. Enabling traders to manage orders across multiple trading destinations including exchanges, brokers, crossing networks, ECNs and MTFs has become an important feature of the EMS and contrast with the functionality of OMSs.