ConvergEx Group, a leading technology company, today announced that it has expanded its relationship with alternative investment firm IndexIQ. IndexIQ is now live on ConvergExâs award-winning order management system, the Eze OMS, and ConvergEx has also signed an agreement to be an authorized participant for IndexIQâs suite of exchange traded funds (ETFs).
Based in Rye Brook, New York, IndexIQ is a leading developer of index-based liquid alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by active managers.
As a client of the Eze OMS, IndexIQ leverages Ezeâs extensive portfolio management and modeling capabilities to rebalance ETFs against Standard & Poorâs market indices on a daily basis and against internally generated indices on a monthly basis. IndexIQ also uses the Eze OMS to manage real-time cash inflows and redemptions.
âThe Eze OMSâs flexible architecture allowed us to configure our system to IndexIQâs specific needs from modeling to order execution,â said Michael Maguire, managing director of Global Consulting for ConvergExâs Eze Castle Software. âWe were able to streamline IndexIQâs workflows with automated modeling schemes, collaborative session management tools, and real-time views for P&L and exposure to monitor firm-wide trading activity.â
Additionally, with a recently signed authorized participant agreement, ConvergExâs ETF trading desk can now offer IndexIQâs clients efficient pricing of their ETF products on a net asset value basis. âUtilizing our proprietary ETF pricing model and dedicated ETF trading professionals, ConvergEx will be able to provide liquidity and cost transparency for Index IQâs next generation alternative ETFs,â said Thomas Smykowski, managing director and head of ConvergExâs Global Portfolio and ETF Desk.