Charles River Development, the supplier of order management systems, has formed a partnership with JPMorgan’s Electronic Execution Services (EES) to give its clients the ability to use organ’s algorithmic stock trading tools in conjunction with the Charles River Investment Management System (Charles River IMS).
The alliance will enable traders using the Charles River IMS order management, trading and compliance application the ability to execute FIX-based equity securities orders according to JPMorgan’s algorithms directly from the Charles River IMS trade blotter. Similar deals is already in place with Banc of America Securities’ (BAS) to give Charles River IMS clients the ability to access BAS’ Electronic Trading Services (ETS) trading platform, and with CSFB and Morgan Stanley.
Charles River says JPMorgan designed its algorithms to minimize market impact and maintain relative anonymity in a way that gives clients the ability to customize the tools to meet their own trading profile. Clients control the strategy of the stock execution (such as price-limits/aggressiveness/price dependent speed of execution) while the computer controls the details (deciding exactly when/where/at what price to send each small component stock order). JPMorgan traders use the same core algorithms to execute stock for their proprietary statistical arbitrage strategies.
“Teaming with Charles River illustrates our continued commitment to aligning client interests with fast and dependable execution,” says Daniel Keegan, head of electronic execution services for JPMorgan’s Equities Americas business. “It’s an exciting partnership that will have immediate benefits for all involved.”
“JPMorgan algorithmic stock trading tools are a proven trade execution mechanism that offers our joint clients the opportunity to maximize performance,” adds Peter K. Lambertus, CEO and president at Charles River Development. “We are pleased that JPMorgan put us first on their list for OMS integration and we worked closely with them to quickly integrate their strategies into our version 7.2.3 of Charles River IMS, scheduled for release later this month.