Charles River Development says that Internationale Kapitalanlagesellschaft (INKA) has bought its Investment Management System (Charles River IMS) to support German and international equity and fixed income order management and compliance monitoring services.
INKA is a registered Master KAG based in Dusseldorf, Germany, with more than Euros 25 billon under management. In Germany, investment advisors do not perform compliance checks or produce regulatory reports for their clients. Instead, each client appoints a Master KAG to perform these functions. As a Master KAG, INKA has selected Charles River Trader and Charles River Compliance, two components of Charles River IMS, to automate and expand these service offerings. Charles River Trader provides INKA with capabilities for securities order management and electronic liquidity access. Charles River Compliance allows INKA to perform global, real-time, pre-trade, post-execution, and portfolio-level compliance monitoring.
“We selected Charles River IMS because the system incorporates the industry’s most complete pre-trade compliance application with a comprehensive library of over 1,000 rules including German KAGG and UK FSA,” says Bernd Franke, CEO at INKA. “Additionally, Charles River IMS gives us the flexibility to start using components of the system now and grow into the complete solution as our needs and resources dictate. For example, we plan to begin using FIX for trade execution with brokers later this year.”
INKA commonly receives trade orders from investment advisors in the form of spreadsheets, text files and, faxes, or via a variety of external trading platforms. A universal translation interface, developed by Charles River, will translate incoming trade orders into XML messages in real-time. These messages will seamlessly populate the Charles River Trader blotter (where INKA can easily manage large volumes of disparate orders) and Charles River Compliance will perform automated, real-time pre-trade compliance checks. INKA can then route compliant trades to external brokers or a custodian execution desk. The entire pre-trade compliance process can take as little as three seconds to complete.
Post-execution trade details returned to Charles River IMS allow INKA to run intra-day and portfolio-level compliance reports. In addition, an interface between Charles River IMS and INKA’s Vega fund accounting system eliminates the need to re-key data, which saves time, improves accuracy, and ensures timely reporting.
“The implementation of Charles River Compliance and Charles River Trader will eliminate a majority of INKA’s manual processes and significantly improve the firm’s operational efficiency and opportunity for growth,” says Neil Tunley, Managing Director of Charles River’s European Operations.