French asset managers agree that ‘Directive MIF’ and derivatives are driving technology strategy

20 November 2008

At a breakfast briefing held in Paris for the Charles River Development (Charles River) French based clients, asset managers agreed that 'Directive MIF' and derivatives are the main technology drivers in the French market today. The briefing brought together buy side decision makers and consultants to discuss market trends and challenges relating to derivatives and European regulations.

Charles River’s French team, clients, prospects and consultants discussed the use of technology solutions amongst the French buy side. "We have used the Charles River Investment Management System (Charles River IMS) on our Parisian trading desk since 2002," said Patrice Robert, Head of Trading Desk, Natixis. "We initially deployed the system for equity trading to streamline operations and increase efficiency. Given its success, we extended the system to support our equity portfolio management and fixed income trading. We’ll implement Charles River’s compliance module in 2009 and we are also considering the migration of our fixed income portfolio management business onto Charles River IMS."

The attendees said buy side firms should consider architecturally open technology that can adapt to challenges such as 'Directive MIF' compliance and derivatives trade processing. Furthermore, they discussed how new technology projects are most successful with experienced, local implementation teams.

Charles River’s technology consultants explained common implementation issues such as the importance of connections with broker counterparties via the Charles River FIX Network and configuring and building interfaces with existing systems to create a seamless trade process.

"In response to 'Directive MIF', Charles River has developed deep compliance functionality and sophisticated best execution tools, such as connectivity to liquidity venues and integrated pre-trade and post-trade transaction cost analysis," reflected Guillaume Poitevin, Regional Sales Manager, Charles River. "We work closely with our clients to understand their requirements and develop relevant solutions. For example, our latest product release enhanced derivatives trading and fixed income processing functionalities as a direct result of client feedback. Also, 'as of' compliance" is a priority for our French clients. The Charles River compliance rule library includes over 1000 pre-built rules, including AMF and UCITS III. We continually broaden the compliance offering in each new release, recent version has included the 'as of' compliance module."

Charles River is the winner of multiple industry and readers' choice awards including consecutive Paris TradeTech honors for Best Buy-Side OMS in 2007 and 2008 and Buy Side Technology Best Buy-Side OMS and Integrated front office in 2007 and 2008.

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