Harnessing Sell Side Functionality for the Asset Management Sector
Catalyst Development Limited has congratulated Royal London Asset Management on the success of a pioneering project to deploy Murex as its derivatives trading platform and thereby harnessing technology historically associated with the sell-side environment.
RLAM’s Murex system has been trading since it went live on December 10th 2012. Both the choice of Murex and the speed and cost at which it was implemented are believed to have wider significance for the asset management community as a whole.
Catalyst worked with RLAM on the system selection and implementation, completing the project in a record 12 months between January and December 2012. Catalyst programme managed the entire end-to-end implementation, working closely with Murex and the RLAM Fund Administrator HSBC Securities Services to ensure the successful delivery.
Tony Sodhi, who led Catalyst’s RLAM team, comments “This was a complex project, delivered at pace. It included additional Front Office functionality within trading, pricing and valuations across Equities, FX, Interest Rates and Credit Derivatives instruments, as well as complex structured products. We also collaborated with the Murex teams to enhance the platform with a customized suite of middle office functionalities, along with a full clearing workflow and associated integration of Tradeweb and Markit Trade Manager. This level of functionality was essential to meet RLAM’s requirements, particularly their need for advanced pricing models, OIS discounting and risk tools, which were available only with a buy side solution featuring advanced sell side functionality.”
Matt Parkinson, Catalyst’s Managing Director, said “whenever we work together, we are impressed with RLAM as real buy side pioneers, focused on what will benefit their clients most. We’re proud that together, we have achieved something special here: RLAM had the vision to think laterally about the technologies available within their vendor selection; close collaboration between RLAM, Catalyst and Murex delivered that into reality, in record time and at unprecedented value. Now, after two successful months of highly successful trading, we can prove that complex system selection and implementation can be done at a speed and cost that is radically less than previously believed; and that it is not just possible, but also highly effective, to deploy sell-side functionality packaged and adapted for the buy-side. This project has considerable significance for any other members of the asset management community looking to strengthen their offer to clients by deploying systems such as Murex, which historically have been viewed as primarily sell-side technology.”
Robert Talbut, RLAM’s CIO, said “We are extremely pleased with how the project was delivered – and with how the system is now working in practice. Our clients are already benefitting from superior risk management and trading capacity. In particular, the successful implementation has given us a substantial increase in our STP capability in processing derivatives trades and an increase in the Risk Management capabilities, allowing greater robustness and control around end to end derivatives trading. Additionally, the deployment of the powerful Murex Limits Controller has enabled the business to undertake both pre- and post-trade compliance, along with the flexibility to add new funds in a controlled and compliant way. We are very pleased with the result.”
Edouard Balliere, Head of the Buy-Side Practice for EMEA and Asia at Murex adds “‘Murex were delighted to extend their footprint in the Buy-Side arena with an opportunity enabling us to tackle wider challenges. We were able to leverage our current buy side platform and build further functionality that addressed the challenges faced by asset managers. RLAM were working to extremely tight timelines for the implementation and the Catalyst team worked effectively with all the key stakeholders to gather requirements and finalise the design. This meant we could configure the system and meet the deadlines. Catalyst were able to accelerate the whole end to end implementation because they really understood the MXpress approach and worked together with Murex to extend standard solution recommendations to processes defined with RLAM. Overall, it has been a great team effort which we believe sets the pace for the future.”