Boston, Beijing, London, Melbourne, New York, Paris, Singapore and Tokyo – January 5, 2011 – Charles River Development (Charles River), a front- and middle-office investment software solutions provider, today announced that Itaú Unibanco Asset Management (Itaú), the largest privately-owned asset manager in Brazil with more than US$ 128 billion of assets under management, is live on the broker-neutral Charles River Network for real-time, electronic trading via FIX (Financial Information eXchange). Itaú leverages Charles River’s low-cost, internet based Virtual Private Network solution for instant access to local sell-side brokers and global liquidity venues. Itaú is one of the first Brazilian buy-side firms to use the FIX protocol for accessing algorithmic trading strategies and handling block trades.
Itaú has been conducting a multi-phased roll-out of the Charles River Investment Management System (Charles River IMS) since 2008. This project, delivered on time, is part of Itaú’s initiative to eliminate manual trading processes and have a single, consolidated platform for order management and electronic trading. Itaú plans to connect its multi-market desks across Latin America to the Charles River Network, allowing traders in Santiago, for example, to execute trades in São Paulo via FIX.
Before Charles River IMS, Equity traders had to manually input trades in spreadsheets and send the orders to brokers, following-up with them over the telephone. Now, they can execute equity instruments in real-time directly from the Charles River Trader Blotter, sending a high volume of orders to local brokers and international liquidity providers, and automatically receiving execution details. The traders no longer rely on spreadsheets and instead of receiving a telephone call, all transaction details – prices, time stamps, fills and more – are instantly recorded in Charles River IMS.
Support for algorithmic trading was critical to the project. Itaú’s traders can directly access local and regional algorithmic strategies, assign algorithms to block trades, and route high-volume block orders to sell-side brokers. In addition, Itaú’s Quantitative traders can leverage proprietary algorithms and high frequency trading ideas for local executions directly from the Trader Blotter.
“Sell-side firms in Brazil are paying closer attention to domestic order flow – offering the buy-side more sophisticated algorithms and execution tools,” said Spiros Giannaros, Vice President-Americas, Charles River Development. “As electronic trading continues to evolve in Brazil, early adoption of the FIX protocol and implementation of Charles River’s integrated trading solution give Itaú a competitive edge. Charles River IMS allows Itaú to meet growing customer demands by increasing investment management capabilities, streamlining processes and reducing operational risk across the board.”
Charles River serves over 300 diverse investment management clients worldwide, including over a dozen firms across Brazil, Chile, Mexico and Panama. These include three of Brazil’s top 10 asset managers and the country’s leading fund administrator, as well as global investment firms establishing their footprint in the region.
About Itaú Unibanco Asset Management
Itaú Unibanco Asset Management is the largest privately-owned asset manager in Brazil, with more than US$ 128 Billion AUM (Aug/2010). With a 14.5% market share in Brazil, Itaú Asset Management has an AM1 (Bra) rating from Fitch Ratings, the highest rating among Brazilian assets managers. Our team is composed of 300 professionals located in Brazil, Argentina, Chile, Mexico, Uruguay and Japan. Itaú Asset Management has a deep knowledge and expertise to manage a broad range of strategies in different assets classes, such as fixed income, equities and hedge funds.
Itaú Unibanco is a multinational financial institution based in São Paulo, Brazil, with strong local presence in Latin American countries such as Argentina, Chile, Uruguay and Mexico, and a well established international network including offices in the United States (Miami and New York), the Bahamas, the Cayman Islands, London, Lisbon, Luxembourg, Hong Kong, Shanghai and Tokyo. Itaú Unibanco is the largest privately-controlled bank in the Southern Hemisphere and one of the 10 largest banks in the world.
About Charles River Development
Charles River Development is a front- and middle-office software solutions provider to more than 300 investment firms in the institutional asset and fund management, wealth management/trust, alternative investment management, insurance, pension fund and fund administration/custody markets in over 35 countries. The Charles River Investment Management System (Charles River IMS) is an institutional-class multi-asset, multi-currency software suite that consists of five main modules: Charles River Manager for portfolio management and modeling; Charles River Compliance for real-time pre-trade, in-trade, post-execution and end-of-day compliance monitoring; Charles River Trader for order management, electronic trading and execution management; Charles River Post-Trade for the centralized management of trade matching, confirmation, and settlement workflow; and Charles River Performance for daily performance measurement, attribution, and performance risk.
Charles River IMS features a modern, proven, N-Tier service oriented architecture (SOA) that is highly scalable and supports continuous 24x7 operations. Message-based APIs and exposed Web Services facilitate rapid systems integration. The system is fully integrated with the Charles River Network, a broker-neutral, financial network that incorporates global real-time electronic trading via FIX (Financial Information eXchange). Charles River also offers comprehensive FIX network and implementation services, as well as hosting and application management solutions.
Founded in 1984, Charles River maintains headquarters in Boston and primary offices in Beijing, London, Melbourne, New York, Paris, Singapore and Tokyo and has a local presence in every other major financial center of the world.