In other FinTech news, Donnelley & Bloomberg collaborate, ExodusPoint picks Northern Trust, and Poland’s KDPW becomes an ARM.
Allan Gray Consolidates Systems via Charles River IMS
Allan Gray, a privately owned South African investment manager, has adopted vendor Charles River Development’s (CRD) cloud-based investment management solution, or IMS.
Portfolio managers, traders and compliance teams will use the CRD’s IMS to manage assets across such products as segregated mandates and unitized funds, Allan Gray officials note in a statement. The firm adds that this “implementation will enable straight through processing from the investment decision through to compliance and trade execution.”
“Allan Gray and other South African clients have taken the strategic decision to adopt our cloud-based solution with fully managed data, which helps them to increase their operational efficiency and reduce risk,” Gavin Lavelle, Charles River’s managing director, EMEA, says in the statement.
Donnelley & Bloomberg Debut Mutual Fund Reporting Service
Bloomberg, a market data, trading solutions and news provider, and Donnelley Financial Solutions report the rollout of a joint regulatory reporting solution that “integrates Bloomberg’s liquidity data with Donnelley’s ArcFiling platform to help mutual funds comply with the SEC liquidity and reporting modernization rules.”
The joint solution integrates the ArcFiling platform and Bloomberg’s liquidity assessment tool (LQA), software that firms can employ to “automate custom monthly reporting for the SEC through machine learning technology,” the firms say in a statement, which notes that the Bloomberg software “includes all three areas of the modernized form N-PORT filing”; namely, “reference data, risk data and liquidity.”
Under the new regulation, open-ended mutual funds are subject to more rigorous reporting requirements for data and liquidity risk in their Form N-PORT filings, according to the two companies.
“With the integration of our ArcFiling platform and Bloomberg’s Liquidity Assessment tool (LQA), firms can now automate custom monthly reporting for the SEC through machine learning technology to provide portfolio-level market data and liquidity risk analytics,” Eric Johnson, president of Donnelley’s global investment markets.
The SEC defines N-PORT as a “new monthly portfolio reporting form … to be used by registered funds other than money market funds and small business investment companies to report series level data to the SEC on a monthly basis within 30 days of month end.”
ExodusPoint to Use Northern Trust’s Hedge Fund Services
ExodusPoint Capital Management has chosen Northern Trust Hedge Fund Services (NTHFS) to serve as its fund administrator to deal with its trading volumes, breadth of products, and the need to scale, officials say.
The NTHFS group will provide ExodusPoint with fund administration, risk services and liquidity solutions to support the firm’s multi-manager platform. The firm is based in New York and its portfolio management teams invest more than $8 billion across equity and fixed income strategies, officials say.
“Ultimately, it was Northern Trust’s combination of technology, expertise in supporting complex businesses, strong client relationships and flexible service model that led to our decision,” says Enrico Corsalini, chief operating officer (COO) at ExodusPoint, in a prepared statement.
The Northern Trust system will help ExodusPoint with data aggregation, intuitive analytics and a “highly customized operating model, says Jeff Boyd, head of Northern Trust Hedge Fund Services, North America, in a statement. “We approach sophisticated alternative investment managers like ExodusPoint as an operations partner that can provide holistic solutions to meet current needs and adapt to support new investment strategies, operating models and markets,” Boyd says.
NTHFS offers administration and middle office services for alternative fund managers and institutional investors, and has approximately $385 billion in assets under administration, as of June 30, 2018, officials say.
Poland’s KNF Authorizes KDPW as ARM
The Polish Financial Supervision Authority (KNF) has authorized KDPW, or Krajowy Depozyt Papierów Wartościowych, which is Poland’s central securities depository, to “provide transaction reporting services” as an ARM, or approved reporting mechanism.
As such, KDPW is authorized to provide transaction reporting services in the European Union under the requirements of the MiFIR regulation, KNF reports.
From early January of 2018 until the KNF authorization, KDPW operated an ARM under transitional regulations and reported transactions for 53 investment firms, the depository notes in a statement, which also points out that KDPW’s ARM “reported more than 34 million transactions in financial instruments on behalf of clients over that period.”
“KDPW offers flexible reporting models tailored to clients’ needs as necessary to report the complete range of required data via ARM, including data reported to the trade repository and transaction data from the markets operated by the Warsaw Stock Exchange,” says Sławomir Panasiuk, vice-president of the KDPW management board, in a statement, in which he also notes that simplified transaction reporting models “allow participants to largely reduce the volume of transmitted data in compliance with MiFIR.”
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