Charles River Development in China
The Qualified Domestic Institutional Investor (QDII) scheme, established in 2006, allows approved Chinese banks, fund houses, security institutions and insurance companies to invest into international assets on behalf of their clients. Initially limited to fixed income and money market products, the scheme has since been expanded to include equity funds. The QDII program has presented Chinese asset managers with the opportunity to re-evaluate their front and middle office processes, with a focus on automating and streamlining their investment management operations across their newly expanded opportunity set. Traditionally, these operations have been handled via spreadsheets, or single-market, single-currency local Chinese systems. QDII managers are now looking to experienced international technology providers, such as Charles River Development, to advance their investment operations in line with industry best practices for both cross border and domestic Chinese investment operations.
Investment firms, asset owners, wealth managers, hedge funds and insurers in more than 30 countries rely on Charles River’s front and middle office investment management platform to manage more than US$29 Trillion in assets. Together with State Street’s middle and back office capabilities, Charles River’s cloud-deployed software technology forms the foundation of State Street Alpha℠. The Charles River Investment Management Solution (Charles River IMS) is designed to automate and simplify the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. Charles River’s growing partner ecosystem enables clients to seamlessly access external data and analytics, applications and liquidity venues that support the demands of their product and asset class mix. Headquartered in Burlington, Massachusetts, we serve clients globally with more than 1,000 employees in 11 regional offices. (Statistics as of April 2020)
Advantages of Charles River IMS
- Comprehensive order management system and execution management system capabilities, including algorithmic trading, pre- and post-trade transaction cost analysis (TCA), direct market access (DMA), automated order routing, access to real-time pricing and security fundamentals, market depth and program trading.
- Connectivity via FIX allows easy access to third party liquidity pools, electronic communication networks (ECNs), alternative trading systems (ACSs), execution venues and exchanges for both QDII managers as well as licensed foreign investors.
- Full commitment to the adoption of the STEP Protocol as a key strategic initiative for our domestic Chinese client partnerships.*
- Supports all security types including global equities, fixed income, money market securities, foreign exchange and complex derivatives including swaps.
- Integrated asset allocation capabilities for category or security level modelling, currency or derivatives overlay, as well as strategic and tactical asset allocation capabilities.
- Decision support with full multi-currency capabilities across all asset classes and markets.
- Helps enable cash management and forecasting, exposure measurement, integrated analytics, and Web reporting.
- Provides scenario, pre-trade, in-trade, post-execution, and end-of-day compliance monitoring.
- Industry-endorsed, tested global 1,700+ rule library across 35 regulatory bodies and more than twenty countries.
*As an active member of the Asia Pacific regional FIX Protocol Limited (FPL) committees Charles River is involved in the ongoing development of the FIX Protocol and its usage within the Asia Pacific Markets. A key FPL initiative for the Chinese domestic market is the STEP variant to provide support for direct connectivity to the Next Generation Trading System (NGTS) currently under implementation across the local Chinese exchanges.
Statistics as of April 2020