- First FIX Direct OMS-to-Counterparty Interface -
BURLINGTON, MA and NEW YORK, August 24, 2005 — Investment managers can now trade foreign exchange (FX) in the industry’s first direct order management system (OMS)-to-counterparty electronic interface via the Financial Information eXchange (FIX) Protocol under a new agreement by Charles River Development and Bear Stearns, the companies announced today.
Charles River, a provider of open, flexible, and scalable investment management systems, developed this interface to help clients execute and manage FX trades; the interface is designed to streamline workflow, improve order spreads and increase compliance capabilities.
Bear Stearns Forex is the first FX counterparty to offer investment managers live executable FX markets directly through an order management system via FIX, the most widely used messaging protocol for industry software. The combination of Bear Stearns Forex and the Charles River Investment Management System (Charles River IMS) will allow traders to electronically route FX spot, swap, and outright (currency forward) orders to Bear Stearns for immediate execution. The link supports post-trade FIX allocation messages as well as MT304 SWIFT messages. The firms recently completed testing on the interface, which will be available in Version 8 of Charles River IMS, a comprehensive front-to-middle office software suite for portfolio management, order management, real-time compliance monitoring, and centralized post-trade processing.
"We are excited about the interface because it puts trading control back into the hands of money managers," said Randy Brummette, a managing director at Bear Stearns. "Charles River is a leader in pushing the FIX standard forward and we are pleased to work with them. Our shared clients will now have immediate access to a live executable FX market directly through their OMS. The solution goes completely upstream, giving a trader the ability to flatten FX exposure the instant it is created.
"Until now, investment managers have not had the technological tools at their disposal to execute their FX trades directly on a real-time basis," said Peter Lambertus, president and CEO of Charles River. "By utilizing Charles River IMS, managers and traders can seamlessly monitor risk, conduct analysis and effectively cover their FX exposure. The interface with Bear Stearns eliminates potential time lags and strives to close any compliance holes typically seen with other FX workflows."
Michael Hayes, director, strategic alliances at Charles River, said, "More investment managers are utilizing and looking for portfolio management and trading solutions that provide them with direct electronic connectivity to trading venues and partners. In addition, we are seeing investment managers trading across borders more frequently than in the past, and generally paying closer attention to the impact of FX and their overall investment performance. By delivering this innovative FX solution with Bear Stearns, Charles River makes electronic FX trading easier for its clients and as a result, extends its current lead in electronic equity and fixed income connectivity into the FX space."