In early 2000, Schroders approached Citisoft to assist in the implementation of an innovative global front office environment to enhance efficiency across the three key areas of dealing, compliance and modelling. The system will support global trading by providing the same functionality to Schroders' main offices in London, Tokyo, New York, Hong Kong, Singapore and Sydney.
Initially Schroders was looking at three separate systems for the front office: a modelling system to be used by fund managers and deal implementers, a compliance system and a dealing system for the group in London. Following internal discussions, Schroders decided that it would be more effective to incorporate the requirements into a global project with one system spanning the three areas. Schroders needed a solution to address the opportunities of globalisation - supporting centralised dealing and 24/7 global trading.
Citisoft was appointed in early 2000 to help in the production of an extensive Request For Proposal, with over a thousand questions, distributed to a shortlist of seven vendors. Citisoft also assisted in the evaluation of responses. Schroders selected the integrated Trading System and ComplianceMaster from Charles River Development (CRD). To provide the full functionality, CRD is developing the system's modelling capability and the integration of this with the rebalancing functionality.
Schroders' Tokyo office was the first to benefit from the global implementation and is now live with the dealing module. The US and Latin American equities desks in London are also live with the dealing module and will be followed shortly by the remaining desks. Implementations at offices in New York, Hong Kong, Singapore and Sydney are planned for later this year.
Having a system that operates on a single database in London yet is accessible to dealers, fund managers, deal implementers and compliance officers worldwide has opened up many possibilities to Schroders. In a scenario in which many offices deal in many different markets, the system enables Schroders to rationalise that considerably and deal live in the market at all times if required.
The system maximises the integration of functions, with trade data, compliance information and decision support (including modelling and the dealing book) shared across satellite offices, improving Schroders' global operation. This allows Schroders to utilise dealers' local market expertise yet seamlessly deliver a globally managed portfolio to clients.
Marc Nield, Executive Director, Institutional IT at Schroders commented: "Citisoft has detailed knowledge of front office system vendors and products and the close communication with the Citisoft consultant throughout the RFP and selection process was very important to us. During the implementation the specific experience of the Citisoft consultant of a similar recent undertaking elsewhere was an invaluable addition. Citisoft's experience of implementing different systems in many locations worldwide - and the issues that can arise - was also important considering the global nature of this project."
Martin Mitchell, Director, Citisoft commented: "Schroders' comprehensive front office system is accruing benefits for the business in terms of performance and efficiency. Citisoft was pleased to be able to support its implementation working with an experienced in-house team that included experts in decision support, modelling, middleware and data management to provide a comprehensive solution for each office."
