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ITG launches Posit Alert for Mexican equities

ITG, a leading independent execution and research broker, today announced the launch of Posit Alert for Mexican equities, marking the 30th global market where Posit Alert is available.

POSIT Alert is a premier platform for sourcing large blocks of liquidity, actively alerting buyside traders to liquidity that matches orders on their trade blotter. Buyside traders use POSIT Alert to prevent information leakage on large orders, maximize their chances of finding liquidity and reduce market impact by matching at the midpoint with no need for negotiation.

In Mexico, POSIT Alert allows buyside traders to anonymously cross blocks of shares on the Bolsa Mexicana de Valores (BMV). POSIT Alert Mexico provides seamless block crossing opportunities without any human intervention, minimizing information leakage.

“The Mexican market can present challenges for the buyside in terms of sourcing block liquidity, particularly in thinner names,” said Eric Blake, ITG’s Head of Latin America. “The launch of POSIT Alert offers an efficient, cost-effective solution for trading Mexican equities.”

 Also commenting on the rollout, ITG’s Head of Electronic Brokerage, Jamie Selway, said, “our Mexican launch is an important addition to POSIT Alert’s global footprint, enhancing the block liquidity value proposition we deliver to buyside traders.” POSIT Alert is already a successful tool for buyside traders across North America, Europe and the Asia Pacific region, seamlessly connecting more than 550 trade blotters. POSIT Alert currently offers 1.1 billion shares of active, global liquidity on a given day in the US, with an average trade size in 2013 of 33,000 shares, compared to approximately 300 shares on US exchanges. In Canada, POSIT Alert trades average approximately 29,000 shares, while in Europe the average trade size is $1.1 million and in Asia Pacific it is approximately $300,000.

Source: Finextra 30.07.2013

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Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, , , , , ,

Outsourcing Reference Data Management: Cost Reduction and New Revenue Opportunities

The past 12 months has seen the emergence of new players offering Business Process Outsourcing (BPO) services for Reference Data Management. These new arrivals expand the range of options available to financial institutions for addressing the challenges of regulatory compliance, operational cost reduction and scalability.

But BPO has other benefits, and innovative adopters have benefited from using the model to create new value-added services. By catering to clients’ data management needs, these players have been able to transform what’s traditionally been considered a cost centre into a new and significant source of revenue.

This paper – from AIM Software – explores this exciting new trend, and describes how an established financial institution took advantage of BPO to turn its enterprise data management initiative into a new source of revenue and business growth.

Download the White Paper Now to Find Out More

Source: A-Team, March 2013

Filed under: Corporate Action, Data Management, Data Vendor, Library, Market Data, Reference Data, Standards, , , , , , , , , , , , , , ,

Falcon Private Bank goes live with the B-Source Wealthmanagment Outsource Solution

B-Source successfully migrated Falcon Private Bank with its global locations to the B-Source Master at the beginning of the year. This will enable the established Swiss private bank to further optimize its processes and concentrate on its strategic expansion.

The successful migration of Falcon Private Bank to the B-Source Master means another Swiss financial institution has put its faith in B-Source’s reliable and innovative banking solution. Falcon Private Bank opted to outsource the operation of its banking platform and migrate it to the B-Source Master, an Avaloq-based banking application landscape using the ASP (application service provisioning) model. All three banking locations in Switzerland, Hong Kong and Singapore were migrated. The work was successfully completed within 15 months, a short period given the differing regional legal regulations. Orbium, a long-standing partner of B-Source, also played a decisive role in the successful project implementation.

By outsourcing its banking platform, Falcon Private Bank has a powerful, efficient and scalable banking solution that will allow it to focus on its strategic expansion in emerging markets. The bank chose B-Source in part due to its extensive expertise and long-standing experience not only in Switzerland but also with locations in other countries.

“The main reason behind our decision was B-Source’s experience in international outsourcing business, as we wanted to migrate several locations to the new banking system at the same time,” explains Tobias Unger, COO of Falcon Private Bank. “The migration of our banking platform to the B-Source Master creates the basis for optimal fulfilment both of our clients’ growing demands for higher quality service and of new regulatory requirements, and for pressing ahead with our global strategy and direction,” adds Unger.

“The migration of Falcon Private Bank to the B-Source Master is a further success for us, and we are proud to count another renowned first-class Swiss private bank among our clients in the shape of Falcon Private Bank. B-Source’s long-standing experience with international private banks enabled us to successfully implement this challenging project in a very short time and to a high level of quality,” says Markus Gröninger, CEO of B-Source AG.

Source: B-Source, 30.01.2013

Filed under: Data Management, News, , , , , , , , ,

VAM: Vietnam Market Analysis – December 2012

Improved economic conditions somewhat buoyed the stock market in the last month of the year as all three indices moved up
The VN-index closed at 413.7, gaining 11.23% while VN30 closed at 485.4, picking up 9.42%. HNX was the best performer of three indices, increasing 11.83% to close the month at 57.09.
 
Macro indicators showed joyful December
Market confidence was regained thanks to better-than-expected CPI, trade balance, interest rates cut and detail implementation of the Government on spurring the economy. For the first time in four months CPI slowed in December, with consumer prices rising 6.81% from a year earlier after climbing 7.08% Y-o-Y in November. Consequently, the State Bank cut benchmark interest rates for a sixth time to help companies cope with difficulties in production and business. The trade balance posted a first year of surplus (of US$284mn) since 1993. Despite a gloomy year, FDI disbursement reached USD10.5bn, dropping a marginal 5% YoY. As a result, foreign reserves are significantly improved, reaching US$24 billion, equivalent to 12 weeks of import. The Dong remains unchanged.
 
However, stability was achieved at the cost of growth
Vietnam’s economy expanded at the slowest pace in 13 years in 2012 as a slump in bank lending dampened domestic demand. GDP grew 5.03%, down from 5.89% in 2011, and the lowest since 1999. Bad debt and the gloomy business environment hampered credit growth, which ended 2012 at 6.45% YoY while total liquidity growth and deposit growth were 19.85% and 20.29% YoY, respectively.As the lenders’ liquidity position becomes comfortable and full-year inflation was a lower-than-expected 6.81%, the central bank decided to cut all policy rates and deposit cap rate by 1%, effective on December 24, in an attempt to make banks lend more. But as the real interest rate is still positive, some are speculating on another rate cut, even as the World Bank warned against easing too soon.
On the other front, the HSBC’s Vietnam PMI index fell back to deterioration in December, down to 49.3 from 50.5 last month, as a result of reduction in order inflows, disinvestment of inventory holdings and stagnating production volumes.
 
Government details its determination to spur the economy
To spur the economy and resolve the financial system, the Government started implementing a detailed action plan. Businesses may enjoy lower corporate income tax rate in 2013, i.e. 23% for large enterprises and 20% for SMEs (down from 25% earlier); real estate will receive more support based on a newly approved proposal by MoF, which includes a 50% VAT reduction, 2-year extension on the deadline of land use fees payment and the establishment of AMC aiming to solve rising NPLs. Moreover, USD300mn from Asian Development Bank in a 25-year loan package will help to restructure SOEs in 2013.
 
Authority changes rules to push the capital market
On the capital market, SSC submitted its proposal in support of the stock market to the Ministry, in which key measures might include tax incentives, allowing to issue stocks below par, increasing margin ratio and trading band and most importantly, increasing foreign ownership limit. Otherwise, SBV governor also announced that they are working on revising the Decree 69/2007, wherein special cases, i.e for restructuring commercial banks, the foreign ownership ratio might be allowed to exceed 30%. Since 10th January, the number of gold bar shops will decline from 8,000 to 2,400 including around 900 in Ho Chi Minh City and 400 in Hanoi, after SBV completes the licensing procedures. 
 
Our ViewOn the background of good macro economic indicators coming out in December and improved investor sentiments after seeing the Government’s determination to spur the economy being detailed into action plans, the stock market had a good run in the last month of 2012. We are cautiously optimistic and have started to mobilize cash into Vietnam Dong to be ready for deployment toward increasing equity level for the Fund. We are keen to buy stocks of strong companies with sound cash flow and healthy balance sheets in fundamental industries such as consumers and materials.

Filed under: Banking, Exchanges, News, Risk Management, Services, Vietnam, Wealth Management, , , , , , , , , , , ,

Brazil: TRADING SCREEN launches OMS, THOMSON REUTERS offers Elektron Hosting

TradingScreen Inc. launches TradePlus, its order management system (OMS) for the sell side in Brazil.

TradePlus, which will be available globally later this month, integrates all trading infrastructure required by broker dealers through a no-install Software-as-a-Service model.

TradingScreen’s TradePlus clients will benefit from an exchange co-located in a local datacenter and an office in Brazil, which ensures low-latency and the industry leading follow-the-sun support that TradingScreen is known for. TradePlus has seamless integration into the world’s leading execution management system (EMS) for the buy side, TradingScreen’s TradeSmart, ensuring a new level of communication between brokers and their clients.

“Sell-side firms looking to buy an OMS face significant challenges when trying to find a system that will integrate with their buy-side customers,” said TradingScreen CEO Philippe Buhannic. “TradingScreen’s TradePlus provides a significant advantage, because there is integration between both sides right out of the box.”

TradePlus covers the entire workflow from liquidity management, order management, book passing, warehousing, sophisticated trading tools, an algo development environment, allocation management and supports a full integration to local back office and middle office systems while leveraging the TradeNet network distribution capability.

“TradePlus offers an innovative set of hosted exchange links and risk and compliance features that insure a new level of control in a high-volume trading environment. TradePlus also provides a highly sophisticated and efficient method for trading the Brazilian equity and listed derivatives markets, while allowing brokers to give their clients the best EMS in the market,” said Jose Barrera, Director of TradingScreen’s Sao Paulo office. “TradingScreen has the largest number of deployed EMS screens globally, and a deep understanding of the market in Brazil. With this foundation beneath it, TradePlus is the right product at the right place and the right time.”

Thomson Reuters launches  Elektron hosting and managed services in Brazil.

The new service, situated in close proximity to the BM&F BOVESPA exchange, will provide trading firms with cost effective, low latency access to the real-time data required to fuel algorithmic and high-frequency trading strategies in Brazil.

Based in São Paulo, the new Elektron data solution delivers high speed connectivity to BM&F BOVESPA for market participants seeking local liquidity in Brazil, including full depth of market pricing along with US-traded American Depository Receipts (ADRs) and CME futures data. By accessing the Elektron services, either through cross-connecting applications within the data centre or externally through a choice of connectivity options, local firms can consume both low latency local market content as well as global, cross-asset real-time data from over 350 electronic venues and hundreds of OTC market contributors and reference data sources.

Investor interest in the fast-growing Brazilian market has increased rapidly in recent years, driving market liquidity and seeing an expanding number of domestic and international firms adopting algorithmic trading. Elektron Hosting and Managed Services provides the comprehensive, high-quality, real-time data and high-performance delivery required to support these trading strategies and help customers gain competitive advantage.

Mike Powell, managing director, Elektron Hosting and Managed Services, Thomson Reuters, said: “The launch of Elektron in Brazil is a natural extension of our established business in the country and supports our customers’ evolving requirements. With Elektron, we continue to bring together global market participants and deliver world-class content that further empowers these communities. We are delighted to be working with BM&F BOVESPA in Brazil to address the requirements of our collective clients for high-performance, cost-efficient data solutions.”

MondoVisione, 24.04.2012

Filed under: BM&FBOVESPA, Brazil, Exchanges, , , , , , , , , , , , , , ,

Brazil: High Frequency Trading in Brazil: Mirage or Miracle?

Christian Zimmer, Head of Quantitative Trading and Research, and Hellinton Hatsuo Takada, Quantitative Trader, of Itaú Asset Management reveal the truth about high frequency trading in Brazil.

Conference panels, discussions and articles on High Frequency Trading (HFT) generally start with its definition. The term HFT is like ‘Cleopatra’ – sexy and mysterious and everyone is keen to know more about it. But the term HFT speaks for itself, so is it wasting time to go over it again?

Probably, because the term ‘high’ only has meaning relative to an external point of reference, just like cold, hot, sweet or other adjectives. This subjectivity is all the more interesting, as it is extremely difficult to measure an investor’s  brief holding period in most financial markets and, therefore, determine if it really is ‘high’. Unlike in the US, where the exchanges do not register the origin of the trade, Brazilian regulation allows BM&FBOVESPA to identify the final client on every trade. Consequently, it is much easier to measure the holding period of an investor for each asset. Also, this rule is the means by which the exchange determines whether an investor’s trade is classified as a ‘day trade’ and is thus eligible for reduced fees.

Naturally, BM&FBOVESPA does not classify a trader opening a position in the morning and closing it at the end of the day as a high frequency trader. There should be far more trading than this to qualify as HFT.  But how much more? It depends on the exchange’s criteria and reference point for ‘high’.

Figures for HFT published by BM&FBOVESPA in their April 2011report show 3.9% of the BM&F segment is high frequency and 5.9% of the BOVESPA segment. Consequently, the reduced fees are presented to the Brazilian trading community as less of an issue, as they say there is evidence of HFT taking hold. But HFT volume is not really increasing and is still far off the US figures which are often cited at around 60-70%. After carefully observing BM&FBOVESPA market prices, it is easy to conclude that it would take some time (possibly hours) to have a change in the prices sufficiently large enough to pay the transaction costs.Remember that HFT strategies are very sensitive to transaction costs.

Our suggestion is to step away from making subjective references to ‘high frequency’. Instead, one should look at the underlying trading strategies. The incentives an exchange should create to attract flow must be adjusted to the strategies that are really needed. Each strategy deserves a different set of policies and this will help the diversification of the traders’ strategies.

A trader using a market maker strategy can live with exchange fees as long as the bid-ask spread is sufficiently high. If the spread narrows, the costs become crucial and the exchange must lower the fees in order to keep this client in the market. On the other hand, a directional trader has different issues; if the fees are high, a trader must wait longer for a relevant price move so that they can capitalize on their position. Contrary to the market maker, the directional trader loves to see narrow bid-ask spreads. There would be no need to lower fees when the spread is close. The same is true for the statistical arbitrage traders.

When looking at the third party analyses of HFT in the international markets, we often see that the most common strategy is the market maker approach. This fact is strongly influenced by market fragmentation, which we do not have in Brazil. Fragmentation creates new intermarket trades, which could qualify as arbitrage trades, but not necessarily as market maker trades. Fragmentation also makes exchanges and other venues compete for the customers that provide liquidity and, as a result, give incentives to market makers. As mentioned above, Brazil does not have a fragmented market and BM&FBOVESPA does not see it necessary to ask for more liquidity. At least not as long as international capital flows are strong and increasing. Liquidity is needed in second tier shares and below.

It remains to be seen whether the inventive BM&FBOVESPA program to exempt the officially designated market makers from exchange fees will be enough to stimulate other participants to trade. At least theoretically, this provides an entry/ exit point for statistical arbitrage traders. However, as long as the allowed spreads can be as large as 1%, the strategy might not be necessarily profitable. At this moment it is worth noting that most of the Brazilian statistical arbitrage trades are longshort trades in stocks focusing on preferred-common stock relationships (in Brazil they are known as PNON, with PN standing for preferred stocks and ON for common ones).

It is also interesting to look at statistical arbitrage trades that are latency dependent, i.e. true arbitrage trades. Are these the ‘true’ high frequency traders? If there are only a few trading opportunities per day, it does not seem as if BM&FBOVESPA could classify them as high frequency. Latency sensitive traders typically use what the exchange refers to as the DMA3 (clients directly sending orders through a connection to the exchange) or DMA4 (co-location) categories. Trades through these categories can easily be measured. Unfortunately, the ability to measure the latency sensitive flow is lost because the DMA3 category is also used for any direct sponsored customer trades, so all that remains is to  measure the flow from the co-location model.

If we use the DMA4 numbers as the reference point for HFT, then we reach a HFT participation figure of 2.8% in the BM&F segment and about 2% in the BOVESPA segment (as at April 2011). The BM&FBOVESPA DMA4 measurements are significantly lower than their HFT percentages. This suggests they accounted additional strategies into this pool, such as market making strategies. Theoretically market makers could have contributed to this figure, but because of a very narrow spread in the high volume stocks and high fees, it is reasonable to assume that the market making strategy does not contribute too much to the HFT volume.

One might argue that there are still the directional trades. Yet, as this strategy needs a certain price move before it can make money and the number of trades per day is limited. On the other hand, the number of traders that might be using this strategy is not limited, as the models are nearly all different. There are only about ten Brazilian players able to successfully run intraday directional trades. Perhaps we should conclude that the international players have better models or a better understanding of the market?

Recently, BM&FBOVESPA announced a new pricing model for high-frequency traders, which uses the Average Daily Trading Value (ADTV) to calculate fees in its equity market. Fees range from 0.019% for R$20 million ADTV up to 0.01% for firms trading over R$500 million ADTV. Ironically, almost no firms were able to qualify as ‘high frequency’ players within the exchange’s cost reduction program.

Source:FIXGloabalTrading, 15.06.2011

Free FGlobalTrading Magazin subscription at http://fixglobal.com/subscription

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, Trading Technology, , , , , , , , , , , , , , , , ,

Buy-Side Platforms: Nirvana in the Front-Office

Centralized, cross-asset trading on a single platform may avoid compliance and risk nightmares. (Round-up industry story on OTC derivatives quotes CRD Managing Director-Global Tom Driscoll and Product Manager Karl Kutschke. The complete story follows.)

 As regulators close the gap between the over-the-counter and exchange-traded markets, order management system and specialist OTC suppliers are gearing up provide the buy side with a single, centralized platform for OTC and listed instruments – a possible Nirvana for the front-office.

 Ultimately, the new rules of the road for the nearly $600 trillion OTC market will give the buy side a long “to-do” list.

 The vendors may have some breathing space. In the US, the regulatory changes are in a state of flux and are likely to miss their mandated deadlines. The Securities and Exchange Commission and the Commodity Futures Trading Commission are moving to set up swap execution facilities, which are exchange alternatives for OTC instruments; OTC clearing platforms with collateral requirements; and swap data repositories.

The regulators are also likely to issue rules that will lead to changes in back office operations, intended to capture and calculate risk to comply with new, forthcoming margining rules. The driving force behind these changes, the Dodd-Frank Act, also allows OTC trades to be transacted on futures exchanges. European regulators are expected to enact similar reforms later this year, which is when the new rules from US regulators are likely to take effect.

The new regulatory environment will mean new connectivity to SEFs, extra transparency into the risk profile of their counterparties, and more transparency into OTC instruments via additional analytics and risk controls. They will need a broader view of the exposure that OTC instruments pose to portfolios. Some of these steps, however, run counter to the push for platform consolidation.

 Step 1: consolidation

Many mid-to-large sized shops are using as many as seven different trading systems to cover cash, foreign exchange, proprietary trading, equities, and fixed income, says Gavin Little-Gill, global head of asset management product strategy for Linedata Services, maker of the Longview OMS. In many cases, the OTC desk is not yet automated.

 “How do you run compliance that way? How do you understand what your counterparty risk is? How do you truly measure your exposure?” Little-Gill asks. “In that environment, it’s very difficult to do so.”

 One way around this problem is for front-office platforms to do a much better job of capturing the “cleanest possible portfolio data as soon as possible,” Little-Gill says. Users also want the data to be validated to avoid data scrubbing later, he says.

 Multiple, isolated systems can arise from firms that have taken a do-it-yourself or a best-of-breed approach, says Robin Strong, director of buy-side market strategy for Fidessa, which offers the LatentZero Minerva OMS/execution management system. These siloed systems have frequently been long and costly implementations. Firms often wind up with a harsh realization that “they can’t actually do pre-trade compliance because half of the trades are in one system and half are in another,” Strong says.

 Moving to centralized, cross-asset trading on a single platform could help avoid compliance and risk nightmares.  “I’d say the nightmare is trying to get a consolidated risk picture,” says David Kelly, director, credit products at Quantifi, a provider of analytics, trading and risk management software for the OTC markets. The strengths of OMS platforms are in equity and bond transactions, not OTC, he says. “Throw a CDS at them and forget it,” Kelly says. “What risk system do you overlay on top of these execution/order management systems that allow you to consolidate a picture of your risk?”

 To avoid nightmares, user firms have to first organizationally change the siloed mentality, says Sang Lee, co-founder and managing partner at Boston-based market research firm Aite Group. “The best approach to providing cross-asset compliance via OMSs would be to make sure that all transactions across the different asset classes get funneled through the OMS so that the compliance module can keep track from a centralized position,” Lee says.

 Converging assets and technologies

In addition, OMS platforms will need more inroads into the OTC environment, says industry analyst Stephen Bruel, an analyst at market research firm TowerGroup. As the OTC market starts to resemble the futures space, “the OMSs will have to make some changes to be able to handle the nuances of the OTC book”, he says.

 “At the same time, there are some OTC derivatives providers such as Misys, Calypso and Murex that perform a lot of these front-office trading functions from an OTC perspective and they’re going to need to modify their technology so that they look and act like something that trades futures because that’s how the trading is going to evolve,” says Bruel, adding that the OTC providers lack the real-time data management capabilities that “you see more on the listed side”.

OMS vendors also have to recognize that there will be no “one-size-fits-all” problem set that they can use to model their cross-asset platforms, says Rob Agne, director of product management at ConvergEx’s Eze Castle Software. The North American, European and Asia-Pacific markets will be distinct as will the asset classes. “Different asset classes will be traded on different SEFs,” he says. Counterparties may choose to specialize. Amid the maze of new rules and regulations, customers will need help finding increased levels of liquidity and transparency, not to mention support for new file formats and reporting requirements.

“You can see how this just perpetuates into somewhat of a difficult environment,” Agne says. “We’re not rushing out to connect to everyone. Part of what we’re trying to do is listen to what our clients are asking for.” Agne says he’s hoping for more standardized, extensible APIs that can serve as a kind of insurance against a likely shakeout among the SEFs and related venues. He is also hoping for standardized contracts via the SEFs.

 However, Agne cites one key benefit of moving OTC transactions to trading venues – the generation of market data. “As a technology vendor, we’ll need to have adapters to bring in that real-time market data for our clients to take advantage of. As these are traded on exchanges, there will be more data for us to process and that’s something we need to consider. We’re working on it.”

Before vendors launch the single platform for all, they will have to resolve “off the charts” customer demands for compliance and regulatory support, says Chuck Giessen, senior vice president and general manager for the financial markets group of SS&C Technologies, maker of the Antares OMS. “The issue in our industry now is the increasing requirements for transactions,” Giessen says.

A case in point is the 11 million Finra-mandated Order Audit Trail System reports processed per month by the SS&C Antares platform, Giessen says. In addition, Antares supports reporting procedures for exchange-traded equities governed by Mifid in Europe and by regulators in Australia.

“As reporting requirements start to include other asset classes, there is a general issue in the transaction sequencing numbers and how you report them and how things are centralized,” Giessen says. Firms will have to grapple with the issue of principal trading books and how to tie them to their underlying options via time sequencing.

 “It’s a massive issue for our clients so we’re doing significant work for them,” Giessen says. “All of which argues for increased spending for IT in an environment where people have less money to spend. And that’s the squeeze. I think that’s the dilemma – everybody knows they need more, but they just aren’t sure how to pay for more.”

 Going to market

When they do go to market, the buy side will find the vendor space a lot “more crowded over the next 12 months,” Bruel says. “We may even see some partnership activity.” For the moment, some vendors are skipping the partnership step. Calypso Technology, for instance, is readying an OTC OMS (See “Calypso to build ‘OTC OMS'”, page 32) while Charles River Development has its own analytics.

 In fact, Charles River will not be partnering with a specialist OTC provider, says Tom Driscoll, the global managing director at the firm, maker of the IMS platform. “We’ve poured tens of millions, if not more, into the support of these types of instruments,” he says.    “We’re building out our capabilities on analytics and there’s risk management as well,” says Karl Kutschke, product manager, fixed income and derivatives at Charles River. Users will be able to watch a trade’s progression through its lifecycle, including its impact on portfolios.

Providing analytics, risk and compliance support will be differentiators among OMS vendors because the pain points have shifted to pre-trade elements, Driscoll says. “A couple of years ago, pre-trade compliance and risk may have been as ‘nice-to-haves,’ “he says. It’s really more of a must-have now.”   Driscoll acknowledges that specialty systems can excel at certain tasks. However, they may miss broader elements such as non-derivative asset classes. “Many of them are good on the risk side but with compliance rules that’s been a challenge,” says Driscoll, who adds that working with a third party contradicts the push for platform consolidation.

Dan Matthies, global head for the Asset and Investment Manager OMS from Bloomberg, says he agrees that pre-trade compliance has become more important for OTC derivatives processing, which is why AIM offers calculations. “If you’re creating a credit default swap on Bloomberg, you’re setting up the deal terms whether they’re captured electronically or created manually,” Matthies says. The deal terms are entered into a calculator before the transaction is sent to AIM.

 Quantifi might consider partnerships with OMS vendors, despite the fact that their product scope is “very limited to cash equities and bonds,” Kelly says. “There’s not a whole lot of analytics in the equities space unless you’re doing charting, which we don’t do.” Quantifi may have more interactions with the OMS providers once they start sending OTC instruments to SEFs.

As for the single platform for all, Kelly says it is nonexistent. “I would argue that if there were such a system it would have a monopoly position in the vendor space,” he says. “In my 20 years in the business, I’ve not seen it created – mostly because the spectrum is so broad.”   Other vendors express a more qualified support for a centralized platform.

 Mattheis says that, while AIM comes very close to being the complete platform, “there’s always going to be something that any system or platform doesn’t do as a result of the market continuing to reinvent itself.” The key is to work with “the biggest community” of diverse firms trading across different asset classes and regions who can then serve as development partners, he says.

“It depends on the requirements of the firm,” Driscoll says. “If you do it across multiple asset classes, finding a system that’s perfect in every asset class is probably not realistic.” However, Driscoll argues that a module that supports 90% of an instrument’s operation and is connected to a unified platform is superior to an isolated system that does 99 percent of the job but costs millions of dollars to integrate. The end users will ultimately decide if they are willing to make that kind of a trade-off for Nirvana.

Source; April 8, 2011; Banking Technology

Filed under: News, Risk Management, Trading Technology, , , , , , ,

China Asset Management Automates QDII Investment Operations and Electronic Trading with Charles River IMS

Single platform allows straight-through processing for company’s Beijing and Hong Kong QDII investment hubs

January 12, 2011 – Charles River Development (Charles River), an award-winning provider of financial software and services to the global investment community, today announced that China Asset Management Company (China AMC) is live on the Charles River Investment Management System (Charles River IMS). China AMC is China’s largest fund manager. China Asset Management has implemented the latest Version 9 release of the Charles River IMS, which fully integrates order and execution management capabilities (OEMS) on a single platform. The implementation, delivered on time and on budget, also includes the Charles River Post-Trade module, which centralizes confirmation, trade matching, and settlement workflow and automates the post-trade process.

China AMC’s investment operations for assets managed under the Qualified Domestic Institutional Investor (QDII) scheme are now fully automated. QDII allows Chinese asset managers to invest in international assets on behalf of their clients. Users in the company’s main offices in Beijing and Hong Kong are currently using Charles River IMS. Charles River IMS interfaces with a number of third-party applications, including a Chinese domestic back-office system, and integrates with various proprietary systems.

“We looked at multiple solutions through a detailed evaluation process with the view to having a solution to support our assets in order to streamline and automate our front office investment platform,” said Lu Xiaoye, General Manager, Information Department, China AMC. “The Charles River IMS provides us with a platform that smoothly meets our current investment requirements.”

“China Asset Management is our first client in the region to automate operations with Charles River IMS Version 9, our most recent release,” said Cameron Field, Managing Director, Asia Pacific, Charles River Development. “As the QDII market in China is becoming increasingly competitive, Chinese fund managers are seeking greater efficiency and control in running their investment operations. They want to scale their business and support increasingly sophisticated products.”

In Asia Pacific, Charles River serves approximately 100 client sites across 14 Asian Pacific countries and is headquartered in Melbourne, with offices in Tokyo, Singapore and Beijing and regional presence in Brisbane, Sydney and Hong Kong. A team of fifty specialists, many of them bilingual Japanese/English and Mandarin/English speakers, provide investment managers with local implementation, consulting and support services. 

Source: Charles River, 12.01.2011

Filed under: China, FIX Connectivity, News, Trading Technology, , , , , , , , , ,

Shenzhen Financial Services and Fund Management Study and Network Tour 3-4 December 2010

Gain deeper knowledge of Shenzhen, China Financial Industry

The study tour is coordinated with the local Shenzhen government support to view the latest mega-development in Shenzhen that would be of interest to business people and visitors alike. Participants will get an orientation of Shenzhen and gain a clear perspective of the importance of Shenzhen in the master plan of the centrally planned economy of China.

Benefits of the Study Tour:

  • Gain first-hand exposure to the current growth climate in Shenzhen
  • Gain an insight into the vibrant economic sectors in Shenzhen
  • Explore ways to capitalize on various initiatives and activities undertaken within Shenzhen
  • Meet and exchange views with the industry’s experts on various challenges and prospects in investing in Shenzhen
  • Create networking and business match-making opportunities among senior executives and those interested in business and investment.
picture Shenzhen today is the leading manufacturing hub of China and the master plan from the Central government which was announced recently is to keep Shenzhen growing for the next 30 years with the building of the “Manhattan” of China at Qianhai, Shenzhen. 

Does this news catch your eye?

Sept. 3 (Bloomberg) — The southern Chinese city of Shenzhen plans to invest 40 billion yuan ($5.88 billion) in its Qianhai area to make it the “Manhattan” of the Pearl River Delta, the Securities Times reported today, citing the local government. The investment in the 15 square kilometer area of the city will be made over the next three years, the Shenzhen-based newspaper reported. The government is looking at the possibility of offering a low tax regime similar to Hong Kong’s and of allowing free convertibility of the yuan in the area, according to the report.

ATIC@Shenzhen 2010 will bring together a group of international participants consisting of fund managers, private equity investors, high-net-worth investors, directors of securities brokerage firms as well as senior executives of global stock exchanges to Shenzhen for an in-depth look at the Shenzhen capital market, as well as to network with Shenzhen government officials, fund managers, securities brokerage firms and listed company CEO’s and companies looking to expand overseas This platform provides a timely and strategic platform to convene investors to discuss strategies, leverage opportunities and explore potential cross-borders business partnerships. Participants will be able to network, mingle and make fruitful contacts to improve their business bottomless.

WHO SHOULD ATTEND?

This is a strategic, informative and concise program designed for Investors, Business Owners, Senior representatives or professionals with Financial Services Organizations such as Fund Management Houses, Securities Brokerage Firms, Securities Exchanges and other finance-related institutions.

Don’t get left behind. Come join us and take this incredible opportunity and advantage to reach your top prospects and grow your business.

Shenzhen Study Tour & Investment Summit Package Price *Early Bird Individual Group (Min 2 persons)
USD750 USD1,000 USD800

*Limited period only.

Package price includes of one study tour luncheon and one exclusive networking and dinner on 3 December 2010. Participation is on a first-come-first-serve basis and interested delegates are encouraged to submit an early registration in order to avoid disappointment.

Register Now!

For more information, please visit http://www.theatic.net/ or contact us at:

Filed under: China, Events, Exchanges, News, , , , , , , , , , , ,

Charles River Development Wins Buy-Side Technology’s “Best Buy-Side OMS” Award for 4th Consecutive Year

Single, consolidated platform streamlines workflows and lowers costs and risks for buy-side firms

Charles River Development (Charles River), a front- and middle-office investment software solutions provider, today announced that the Charles River Investment Management System (Charles River IMS) has won the Buy-Side Technology Award for “Best Buy-Side Order Management System” for the fourth consecutive year.

“Once again, this award validates Charles River’s commitment to empower portfolio managers, traders and compliance officers with advanced tools that improve efficiencies and reduce risk and costs,” said Peter Lambertus, President and Chief Executive Officer, Charles River Development. “Our continued investment in research and development delivers flexible, scalable solutions to support requirements of both large and small firms.”

Judges for the Buy-Side Technology Awards 2010 included leading buy-side-focused technology consultancy firms. These experts selected Charles River IMS as a multi-asset, multi-currency solution for automated decision support and portfolio management, real-time pre- and post-trade compliance and global FIX trading.

The Buy-Side Technology award follows Charles River’s recent recognition for “Best Buy-Side Technology Firm” by Asia Asset Management Best of the Best Awards and the “FinTech Top 100,” American Banker/Financial Insights 2010.

Source: Charles River Development, 08.11.2010

Filed under: Asia, Brazil, FIX Connectivity, Latin America, Mexico, Risk Management, Trading Technology, , , , , , , , , , , , , , ,

LatAm Hedgefunds: Comprehensive Report and Webinar November 10th

Alternative Latin Investor is proud to present our combined LatAm Hedge Fund Report and Webinar to be hosted by Hedgehogs.net CEO, Ken Yeadon, on November 10th at 1pm EST.  Early-bird price till Nov. 2nd is 175.00USD after which price is 199.00USD.  This price includes digital edition of report with directory as well as attendance to webinar.

REGISTER HERE

We have interviewed several industry professionals; mostly fund managers, to create a comprehensive overview of the LatAm fund market. We also look at the existing LatAm fund indexes and the legal aspects of funds. Included is a profile of 30+ funds with a directory of contacts, email or phone, for over 300+ funds

  • Industry Overview
  • Growth of Industry
  • Legal Aspects
  • LatAm Fund Indexes
  • Changes in Legal Aspects
  • 30+ Fund Profiles
  • 300+ Directory
  • The Economist on Hedge Funds

Webinar

Topics to be discussed
  • LatAm funds versus Global Macrofunds or Emerging Market funds with LatAm exposure
  • New investor demographics, or the same?  And who are they?
  • Institutional Participation?
  • Has there been a change in global opinion of LatAm funds due to crash of US/Euro markets?
  • Has this created a vacuum for LatAm to fill?
  • With the developed world seemingly on the path of competitive devaluation vs. emerging markets, how do the panel see Latin American investments being impacted?
  • Asian countries, in particular China, are increasingly looking to secure commercial rights over global supply chains for resources. (e.g. recent headlines over global supply of Rare Earths, a critical commodity input to green energy technologies and mobile devices). How is this impacting Latin America, and are any Latin American countries following similar strategies (via Sovereign Wealth Funds for example) to exploit their natural resource advantages? Does this represent an investable theme for Latin American funds?

Host

Ken Yeadon – CEO of Hedgehogs.net, a social application platform for the hedge fund and investment industry and those who serve it.

Ken is the former head of trading, sales and e-commerce for HSBC Asia-Pacific. He has a successful track record in angel and venture investing in financial technology, and in high frequency trading, stat-arb and quantitative/arbitrage trading. He has also managed several liquidity management infrastructure and financial CRM projects for banks, brokerages and technology vendors. Ken has an MBA from John Cass Business School and a BA in Economics from Nottingham University.

Expert Panel

Sonia Villalobos Co-portfolio manager of the LV Pacific Opportunities Fund
She was formerly Head of Latin American Equities at Larrain Vial AGF. A Brazilian citizen, she has more than 25 years of experience in the LatAm capital markets. She was Head of Research at Garantia in Sao Paulo from 1989 to 1996 and Vice President at Bassini, Playfair & Associates from 1996 to 2002. She holds a Bachelor and Master’s degree in finance from the Fundación Getulio Vargas in Sao Paulo. In 1994 she obtained her CFA, the first person in Latin America to achieve it.

Andres Azicri President and Founder of Convex Management
Prior to founding Convex, Andres Azicri was a Managing Partner of Cima Investments and the senior portfolio manager of the Cima Aconcagua Fund. Before joining Cima, Mr. Azicri was the head of Asset Management at MBA, prior to which he headed the Proprietary Desk for Latin America at Bankers Trust in New York (1997-1999) and the Emerging Markets Fixed Income Research Department at Oppenheimer & Co., in New York (1995-1997). Mr. Azicri is an economist from the University of Buenos Aires (1988), and is currently a professor of finance at CEMA University and the University of Buenos Aires.

Carlos Rojas Portfolio Manager Compass Perú
Portfolio Manager of the Peru Special Investment Fund. He joined Compass in 2006 after working for 12 years in the financial industry. In his previous role he managed over US$ 300 million for the Rimac Group and was also an investment advisor for the Brescia Group. Previously he performed roles in M&A operations, financial structures, derivatives, and trading. Mr. Rojas has a BA in Business Administration from Universidad del Pacífico in Peru.

Andrew Cummins Founder and Chief Investment Officer of Explorador Capital Management, LLC.
Previously, Andrew worked for Emerging Markets Investors Corporation, focused on investments in Argentina, Chile, Peru and Ecuador. Andrew holds an M.B.A. from Harvard University and a B.S. from the University of California at Berkeley. He has lived and traveled in Latin America over the last 20 years. Andrew serves on the Board of INPAR, a publicly traded Real Estate company in Brazil.

Webinar:

Date: November  10th
Time: 1pm EST
Price: USD 175.00 early bird till Nov. 2nd
USD 199.00

REGISTER HERE

Filed under: Argentina, Banking, Brazil, Central America, Chile, Colombia, FiNETIK Events, Latin America, Mexico, News, Peru, Risk Management, Services, Trading Technology, Wealth Management, , , , , , , , , , , , , ,

Mexico’s Scotiabank Inverlat, Automates Mutual Fund Operations with the Charles River Investment Management System

Streamlines workflows; ensures compliance for all local/international securities and debt instruments

October 21, 2010 – Charles River Development (Charles River), a front- and middle-office investment software solutions provider, today announced that Scotiabank Inverlat, S.A. (Scotiabank Mexico), one of Mexico’s largest banking groups, has implemented the Charles River Investment Management System (Charles River IMS) across its Scotia Fondos subsidiary. The multi-phased project, delivered on-time, is part of Scotia Fondos’ initiative to automate its domestic and international mutual fund (Fondos de Inversion) operation with 16 different portfolio options on a single, consolidated platform.

Scotia Fondos’ users benefit from advanced decision-making and analysis tools, automated portfolio management and trading, and real-time, pre-trade compliance monitoring for all asset classes, including equities, money market, mutual funds, as well as Mexican corporate and government fixed income instruments, such as Bonos, CETES and UDIBONOS. During the initial project, Charles River automated Scotia Fondos’ equity portfolio management and trading operations, as well as compliance monitoring. The second phase consolidated capabilities across the firm’s fixed income operations.

“We required a state-of-the-art system and a vendor with proven experience in supporting the needs of Mexico’s asset managers; Charles River delivered both,” said Ernesto Diez, Director General, Scotia Fondos. “Our portfolio managers can now stay ahead of the market by analyzing and rapidly implementing changes to portfolios. We can also validate that our portfolios comply with all mandates – at any time and for any asset class.”

Support for Mexico’s numerous local market requirements was critical to the project. Charles River IMS allows Scotia Fondos to manage and execute trades for all Mexican government and corporate debt instruments. The firm’s mutual fund traders can also execute stock lending, support repurchase agreements and rebalance against Mexican indices. In addition, Charles River’s open architecture makes it easy for Scotia Fondos to integrate with its proprietary accounting system, as well as back-office providers, such as Bloomberg for real-time pricing, and Mexican Stock Exchange-owned Valmer for risk data.

Charles River IMS supports region-specific security types and associated workflows, including Mexican corporate and government bonds. In the near future, Scotia Fondos will continue with the implementation of Charles River IMS’ advanced derivatives exposure calculations and coverage functionality helping clients comply with Mexican regulations, such as Comision Nacional Bancaria y de Valores (CNBV) rules, by monitoring and managing pre- and post-trade exposure to derivatives instruments. Charles River’s pre-built compliance libraries contain over 1,700 regulatory and general example rules across 35 regulatory bodies of 20 countries, including comprehensive rule libraries for Mexico.

“Charles River offers asset managers in Mexico sophisticated, yet easy-to-use solutions for expanding their operations into new asset classes and markets – delivering a competitive advantage that supports business growth,” said Spiros Giannaros, Vice President of Sales, Americas, Charles River Development.

Charles River supports five client firms in Mexico, and serves over a dozen firms across Brazil, Chile, and Panama.

Source: CRD, 21.10.2010

Filed under: Brazil, Chile, FIX Connectivity, Latin America, Mexico, News, Risk Management, , , , , , , , , , , , ,

VAM: Vietnam Market Analysis July/Agust 2010

Market Update – This month Fitch downgraded Vietnams debt rating to B+ with a stable outlook from BB- citing inconsistent government policy, low foreign exchange reserves and a weak banking system. The move came as a surprise to many commentators who looked at Vietnams ever improving macro condition as reason for optimism. We also share this opinion, as the move was somewhat unjustified and does not reflect the efforts of the government in stabilizing the macro environment and the countrys currently improving key macroeconomic indicators. VAM_Monthly_Newsletter_Jul_2010

In July, industrial production and retail sales were up 13.5% and 26.4% year on year respectively. Although year to date up 17.5% when comparing to the same period last year, export turnover this month declined 8.8% MoM as subdued European demand made its impact which contributed to Julys monthly trade deficit of $1.15bn or $7.4bn year to date, equivalent to 19.4% of export turnover. However, capital inflows can adequately compensate the deficit with FDI disbursement being recorded at $6.4bn year to date and overseas remittances showing an increase of 24.5% year on year in the 1H 2010, achieving $3,9bn. It should also be noted that ODA flows and external borrowings have not yet been taken into account.

Foreign reserves are expected to increase by $2bn to $17bn by the end of this year. Credit growth for the first 7 months was 12.97% highlighting the importance of recent reductions in bank lending rates in realizing the governments effort to achieve its target of 25% for the year. Continued low inflation has also given the government room to increase the money supply in order to push lending rates lower.
The VN-Index continued its sideways path during the month as mixed second quarter earnings failed to support a change in stagnant retail sentiment. However, the downgrade did prompt net buying from foreign investors to decline towards the end of the month. The VN-Index closed the month at 493.91 or a decrease of 2.61% MoM.

Our View – By end of July, most corporates have disclosed their 2Q 2010 earnings results which have been quite mixed with consumer sector looking good while property and materials sectors seeming weak. Despite first half year business results being in line with expectations and macro economy experiencing positive signals in the month, they were not supporting enough to drive the bourses upwards as investors remained skeptical about new capital flows injected into economy via credit growth policies.

For August, we expect the markets movement to be mainly driven by factors such as selling pressure, investors confidence and a break-through in easing monetary policies of the State Bank of Vietnam (SBV). Concerns on the oversupply of shares in the market (particularly from banks in order to meet the minimum charter capital requirements) will also create a lot of pressures on the VN-Index.  As the market has followed a bearish trend recently, specific and comprehensive actions from the SBV via credit growth policies will be an important catalyst in bringing back investors confidence.

Currently, we still uphold our interests in telecommunication, oil & petrochemical, dairy product, pharmaceuticals and banks.  Moreover, we will be continually keeping an eye on news on the global economy and monthly government meetings to closely observe the trend of macro and monetary policies in the near term.
Source: VAM, 08.08.2010

Filed under: News, Risk Management, Services, Vietnam, Wealth Management, , , , , , , , , , , , , ,

BlackRock Q2 2010: Profit 98% up / Ganacias se elevaron 98%

Black Rock second quarter financial report Black Rock Q2 10 EARNINGS RELEASE

Black Rock segundo trimestre reporte financiero  –  sumario en español

  • Las ganancias trimestrales se elevaron 98% respecto del mismo periodo del año pasado.
  • BlackRock atribuyó las ganancias del trimestre al incremento en los activos netos y a la recuperación de los mercados internacionales.
  • Los ingresos netos aumentaron a $432 millones de dólares, un 35% más comparado con el mismo periodo de 2009.
  • En el primer semestre del año, BlackRock obtuvo una utilidad de 855 millones de dólares, un aumento de 183% respecto del año pasado, y un incremento en sus ingresos de 99.7%, hasta 4,027 millones de dólares.
  • El director general de la firma, Laurence D. Fink, comentó que los resultados del segundo trimestre son “un testimonio de la resistencia” de la plataforma de negocio de la firma.
  • Los activos bajo administración (“AUM”) totalizaron los $3.151 billones de dólares (trillion) al 30 de junio de 2010.

“La integración de nuestros programas continua de acuerdo a lo programado, junto con los aspectos clave de la integración cultural. La semana pasada anunciamos diversos nombramientos importantes, lo cual representa la culminación de una revisión intensiva, post-adquisición, de nuestra estructura organizacional. Creo que tenemos el mejor liderazgo del sector, y gracias al impulso de nuestro negocio podemos exigir de nuestro equipo y plataforma lo mejor. Apenas hemos empezado a apuntalar nuestras amplias capacidades para servir mejor a nuestros clientes, comentó Laurence D. Fink.

Fuente: Carral Sierra / BlackRock, 21.07.2010

Filed under: News, Services, Wealth Management, , , , , , ,

Alternative Assets in Latin America: Expert Panel Discusses June 15, 2010

Please join Alternative Latin Investor and Focus Point Press June 15th for a round table webinar of industry experts discussing alternative assets in Latin America.  http://www.alternativelatininvestor.com/Webinar/AlternativesAssetsInLatAm.pdf
Our Panel:

Brigitte Posch
PIMCO Executive Vice President and Portfolio Manager in its emerging markets group. Prior to joining PIMCO in 2008, she was a managing director and head of Latin American securitization and trading at Deutsche Bank.

Will Landers
CFA, Managing Director, Senior Portfolio Manager, is the portfolio manager for the BlackRock Latin America Fund, the BGF Latin America Fund, the BSF Latin American Opportunities Fund and the BlackRock Latin American Investment Trust PLC.

Andrew Cummings
Founder and Chief Investment Officer of Explorador Capital Management, LLC.

Eric Saucedo
Partner at Tricap Partners & Co., an investment banking firm focused on early-stage and middle market growth companies.

Topics:

-How alternative investment vehicles are faring in this recovery phase of the crisis
-What strategies performed the better than others
-What regions, sectors and vehicles are looking good for the coming year
-New players to the region who we should keep an eye on
-Growth of regulation in the alternative space
-Where new capital to Latin America is coming from
-Participation of both, foreign and domestic institutional investors
-How LatAm stacks up against other emerging markets
-The effect of Chavez on investor confidence in LatAm investments
-How sustainable is Brazil
-Countries to watch

Date: Tuesday, June 15
Time: 1pm EST
Price: 89.00USD
Register at http://www.regonline.com/Checkin.asp?EventId=866305

For more information please see,
http://www.alternativelatininvestor.com/Webinar/AlternativesAssetsInLatAm.pdf

Filed under: Argentina, Banking, Brazil, Central America, Chile, Colombia, FiNETIK Events, Latin America, Mexico, News, Peru, Services, Venezuela, Wealth Management, , , , , , , , , , , , , , , , , ,