Achieving same-day trade matching of institutional orders is viewed by many in the Canadian securities industry as an opportunity to create best practices for market efficiency. Post-trade processing was the number one issue of more than a dozen leading investment firms who attended Charles River Development’s (Charles River) Canadian client seminar, held in Toronto days after Canada’s national instrument 24-101 (NI 24-101) rule requiring initial policies and procedures for institutional post-trade matching and settlement went into effect on April 1st.
According to Charles River, technology plays a critical role in facilitating straight-through processing (STP) by automating the entire trading process and connecting all those involved in executing or clearing trades.
"Given the backdrop of NI 24-101, settlement and the ability to facilitate same-day affirmation of trade results is a key focus for our Canadian clients," says Tom Driscoll, vice president sales & marketing, Charles River Development. "Charles River is seeing an increase in the number of buy-side firms that want to replace manual processes, save time and reduce the likelihood of costly errors and failed trades. Automating the trade life cycle from portfolio management through settlement is critically important for firms preparing for the new regulations."
Charles River investment management system (Charles River IMS) enables investment managers to manage post-trade processes with all trade parties, the firm says. Charles River IMS and its post-trade module streamline trade routing and management with popular venues by providing standardised, automated interfaces and messaging options. The system provides support for FIX (financial information exchange) allocations, and embedded rules-based functionality allows traders to automatically route FIX allocations to the correct counterparties in real time. By automating the post-trade process, Charles River IMS reduces costs and errors, improves risk management and enhances settlement for each transaction across all security types, domiciles and protocols, according to the firm.