Export Sites Tradersmagazine 04 Data Media Pdfs EMS OMS08

8/12/2019 Export Sites Tradersmagazine 04 Data Media Pdfs EMS OMS08

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A Sponsored Supplement toTRADERSMAGAZINE Produced by SourceMedias Custom Media Group

OMS and EMS EarnTheir Stripes,

Carve Distinct Roles

CONTENTS

78Advanced Financial Applications, Inc.

80Advent Software, Inc.

82Bank of America

84Charles River Development

86Eze Castle Software LLC

88Fidessa LatentZero

90INDATA92InfoReach, Inc.

94Morgan Stanley

96Tethys Technology, Inc.

98UBS Securities LLC

Matt SamelsonSenior Analyst

Aite Group

Dushyant ShahrawatSenior Research Director

TowerGroup

Order-management systems (OMS) have emerged as one of the most critical aspects ofsoftware in the entire asset-management lifecycle. So says Dushyant Shahrawat, senior research director of Boston-

based TowerGroups Investment Management practice. To reach that pinnacle, providers have overcome an onslaught of

competition especially impressive considering relentless pricing pressure, notes Shahrawat.

Meanwhile, execution-management systems (EMS) hold one edge over order-management applications: providers have

zeroed in on the auto blotter, delivering unmatched trading functionality.

A lot of the EMSs have better trading functionality than the best OMS has, Shahrawat says. But as an asset-management

company, you need more than just trading capability. You need the portfolio-modeling aspect, you need the compliance

aspect, you need the post-trade support aspect which you do not get from EMS.

Bottom line: Theres no way most traders could do without both EMS and OMS.

Shahrawat describes maturity over the past 18 months in peoples understanding of where the EMS fits vs. the OMS.

Both categories of applications are doing well, but have each found their place, he says. I think of the EMS frankly

as a subset of OMS functionality but really pushing the envelope on trading functionality. After a tremendous amount

of development between 05 and 07, the EMS has found a place for itself as purely a trading front-end and as a way for

brokers to attract order ow from the buyside.


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EXECUTION MANAGEMENT SYSTEMS / ORDER MANAGEMENT SYSTEMS

A Sponsored Supplement toTRADERSMAGAZINE Produced by SourceMedias Custom Media Group 7

He believes EMS and OMS will never blend into one system because

they have different economic models as well as different technology and

infrastructure requirements. As evidence, he points to order-management

providers who are developing separate EMSs.

Matt Samelson, an Aite Group senior analyst, Boston, sees EMSs

developing limited OMS capability and vice versa. So I wouldnt say

theres a complete blurring of the offerings, but each product is moving a

little more in the direction of each other, he notes.

Aite Group proles 20 providers and their systems in Aite Group

EMS/OMS Report 2008, which will be available by September. Its not a

competitive analysis but rather a tool to help rms identify and evaluate

a subset of providers most closely aligned with their trading style and

needs. The report also identies EMS and OMS trends.

Its important to match your characteristics and needs to the

appropriate providers and really have a short list, and then from there do

a further selection, Samelson says.

THE ECONOMICS

In an upcoming TowerGroup report, Shahrawat will highlight an

important issue: the tough economics behind the order-management

segment. Clients persistently demand greater functionality but are

unwilling to pay more, a carryover from OMSs introductory throw-away

pricing aimed at convincing the market to try a new product. Because

of competitive pressure, providers continue to operate at a razor-thin

margin, as outlined in TowerGroups June report, Strategic Update on

the Buyside Order Management Market: Have Things Really Changed?.

Clients are paying more than they did ve years ago but thevalue theyre deriving from OMS is a tremendous amount more, in

Shahrawats opinion.

Youve got rms that are managing $100 billion in assets and

generating $30 million in fees, explains Shahrawat. And theyll beat

up their order-management vendor for a 10 percent price discount. And

you pay for your order-management application which is your most

important application in your entire arsenal $120,000 to $130,000.

Youre probably spending more on the HR systems than for the order-

management application. Somethings wrong there, isnt it?

Nobody wants to talk about it, but in his opinion, cut-throat negotiations

are undermining this industry segment. Because of pricing pressure and

competitive pressures, the amount order-management system providers

get paid for their services is not enough for them to make a good prot

and yet pour enough R&D resources into keeping up with the times and

adding functionality, he says, believing the investment industry overall

would benet from a more reasonable OMS pricing structure.

Consider this thought from Shahrawat: If the order-management

providers were making money hand over st, they wouldnt be selling out.

Theyd all be going public. None of them are because its not a lucrative

business for them.

Salvation may come in the form of OMSs expanding relevance.

No longer just a traders tool, it is becoming a must-have for portfolio

managers who tend to have greater inuence over budgets than

traders and others throughout rms. Shahrawat hopes that will elevate

the discussion and improve pricing in this space.

THE FUTURE

Despite this challenge, OMS providers have made substantial progress

over the past two years, says Shahrawat, pointing to OMS improvements

in auto blotter, which is the trading functionality, and portfolio modeling,

which is all the functionality focused on the portfolio manager.

OMS growth, he says, will be in derivatives and alternative asset

classes; retail and wealth management; and international expansion,

with a focus on Eastern Europe, the Middle East, India, China, Brazil,

and Russia.

International expansion will require OMS providers, most of whom

have had a Western focus, to establish a presence in the markets

theyre targeting, advises Shahrawat. That includes practical things,

such as opening ofces, hiring local sales people, working with local

asset-management companies. Doing so properly can takes years.

As for EMS, says Aite Groups Samelson, There is demand for the

ability to handle multiple currencies, multiple asset classes, and have

a global solution.

The differentiators that set apart providers who truly deliver value

tend to be service-oriented and also in some cases functional how

exible and robust the particular systems are, he says.

The majority of these systems are customized solutions,explains Samelson. So especially on the EMS side, theres a lot of

consultation. Whether in terms of setting the system set up the way

the client wants or helping them on an ongoing basis with analytics

or the technical side of that implementing based on something the

client wants to do.

Its highly valued because these traders are trying to do some

complex things these days. Theyre relying on the vendors to try to

help them integrate and actually make the stuff work. So really what

buying a vendor-provided solution means is the whole tech side of

this is outsourced. And if you need to speak with someone in terms of

supporting or modifying the system, youre going right to the vendor,

he says.

Samelson anticipates more enhanced abilities in non-equity asset

classes, a focus on reduced latency, and greater capacity. Over the long

term, he believes well see better coverage in some of the developing

markets and some of these plain-vanilla instruments, these exchange-

listed instruments, trade electronically.

As technology evolves, the ability to trade faster, the ability to trade

more, the ability to perform higher power analytics youre just going

to see more overall robust systems, Samelson says.


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SPECIAL

REPORT

It is also true that technology, poorly selected, can put a rm at risk.

The simple question each nancial services rm must ask is: does

the technology serve the rm or will the rm be held hostage through

unwise technology decisions and deployment? A related and more

specic question is: does the technology focus on the more substantial

gain of integrating order processing to extract value?

Decisions pertaining to trading and order management technology

choices and deployment should not merely emulate internal execution

and order management processes, but need to be utilized to actually

extract value from the automation of these processes. When seen this

way, trading technology can very much contribute to greater returns

in performance and protability while lowering a rms operational

risk prole.

As a consequence, rms now seek a combined EMS/OMS capability

that is ASP-based, nimble, and at a low price point especially in this

market environment. The ability to combine EMS and OMS features,

while simultaneously providing for multi-broker access on the front end

with middle ofce allocation and multiple prime capabilities on the back

end, enables brokers to offer a robust, exible and relevant platform

to their clients. For the buy side, it enhances the ability to secure

full-cycle trade capability. AFA has developed and deploys a highly

efcient, functionally rich solution that covers these workow needs.

In addition AFAs offering is both multi-asset and connects to markets

worldwide. AFA continues to enhance its product suite at a very high

rate, thus proving that our rm has the right platform and the right

team. We embed market expertise into our offerings.

The benet of a web-hosted ASP offering is that it does not make

demands on a client rms internal resources, thereby unlocking assets

and lowering costs. Enterprise-wide, legacy-based heavy platforms

can, and should, give way to more nimble offerings in essence,

the technology becomes a resource not a burden allowing market

professionals to focus on their work, rather than having to entangle

themselves with manually intensive, and inherently risk-laden tasks.

Buy and sell Side rms continually need and deploy advanced technology

solutions. A vendors ability to anticipate these needs and deliver on

them rapidly directly impacts a client rms protability. AFA comports

itself as a Strategic Vendor, one who listens AND delivers, all the while

keeping nimble (reducing our own production and delivery cycles), and

truly relevant in deploying needed technology to our clients. And, while

it is somewhat technical, rms need to understand how much code

needs to be worked in order for vendors to deliver. AFA has a single

code string, enabling rapid development processes on new features.

Other vendors, who have legacy systems, frequently must work with

thousands of lines of code for each change in a program, either ones

that are already deployed or for new applications.

The Devilish Details

Finally, commercial realities need to play a role. AFA remains one of

the last service providers that is independently held and is neutral in

transactions. This is critical in terms of establishing trust and credibility

with all players in the street. There is no conicted owner for AFA.

AFA enables rms to take a hard look at their technology, but also at

their vendor relationships. From AFAs viewpoint technology deployment

demands domain experts who can work with rms to anticipate market

trends and develop technology response to take advantage of trends

before they occur. AFA enables its clients to be rst movers.

AFA On Navigating Market Turbulencefor Performance By Patrick Lynch, Chairman and CEO

COMBINED EMS/OMS CAPABILITY: NOW MORE THAN EVER

Over the course of the last year market conditions have become incredibly stressed, and the choices available

for executing and managing trades have grown ever more complex. Yet pursuit of alpha in todays global, multi-asset

environment remains a critical task for institutions and hedge funds. And their broker-dealers are expected to

provide platform and process efficiencies that aid in the investment decision process.


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The rms platform provides global multi-asset EMS/OMS on one

platform, with multiple broker and multi-prime connectivity.

As hedge funds continue to be under strain, the ability to access

multiple primes is seen as a duciary responsibility. For traditional

money managers, whether acting for themselves or as hedge fund

investors, multi-broker, multi-asset, multi-prime is a strong asset for

their own operational capability.

And for brokers, the ability to present, on day one, to both clients

and prospects, a level of competence and comfort with regard to

cost-effective and rapid deployment of technology is a competitive

advantage.

AFA takes a strategic view of the securities industry, and is committed

to providing a clear and coherent choice when the technology-related

decisions must be made.

Benefits for Resellers / Distributors of IMAPACT Pro

(Broker Dealers and Prime Brokers):

Being able to deliver its products (DMA, Algo, Research,

Prime portal) via IMPACT Pro

A combination of EMS / OMS fully hosted by AFA

Remote application: Lets users install the application quickly

and easily

Broker Neutral: 45 broker dealers on AFAs network

Position Management: Users are able to consolidate all their

positions across multiple prime brokers

Allocation: Allows users to allocate into multiple funds at multiple

prime brokers

Benefits for Users of IMPACT Pro (hedge funds,

money managers, and family offices)

ASP Model: Fast and easy installation of the platform

Broker Neutral: Gives users an ability to pay all brokers

Position Management: Be on top of their positions by consolidating

all positions across all primes

Allocation: User friendly allocation module allows users to allocate

into multiple funds at multiple primes

Advanced Financial Applications, Inc. is a financial

services technology company that provides a suite

of Integrated Order Processing (IOP) solutions to

buy and sell-side institutions. AFA helps hedge funds,

asset management firms, broker dealers and family

offices grow their businesses by creating and deliveringtrading solutions to streamline trade workflow,

thus resulting in lower operating costs. For more

information, visit AFA online at www.afapp.com.

Advanced Financial Applications, Inc.

111 Broadway, Ste 405

New York, NY 10006

www.afapp.com

Nilesh Nanavati

President

212-286-1245

[email protected]

Pat LynchCEO


Nilesh NanavatiPresident



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SPECIAL

REPORT

In todays trading environment, a trader must constantly ght and

conquer fragmented liquidity, increased scrutiny on best execution, an

ever growing global marketplace, and the inherent increases in data

necessary to compete effectively amidst these environmental factors.

They must address all of these scenarios while also insuring effective

intra-rm communication of their activity and results. The sheer scope and

diversity of these challenges and their resultant opportunities demands

that a trader or rm have choice when deciding upon and implementing

the best-of-breed tools necessary to effectively run and manage their

business in these often hostile and rapidly changing environments.A trader must be able to chose and implement the OMS that enables

their entire investment strategy; ensuring they can chose from a wide-

array of additional trading tools (EMS, Algos, Dark Pools, etc.) without

limiting them to one vendors solution. The specicity of both function

and design from both platforms provides a trader with the precision

necessary to enact their strategies.

The necessity of choice when selecting best-of-breed tools for trading

combined with the need for precision in the capabilities of those tools

brings to light the third and most important component of a trading

desk; a tool to unify the disparate areas of the business (Back Ofce,

Post-trade, etc.) with the trading tools and information required.The OMS system can provide unity by being the hub of the

trading desk.

With Advents Moxy OMS as the hub of the trading desk, a trader can

receive information from the portfolio accounting system, investment

decisions from the Portfolio Managers, reach the needed liquidity

directly, and extend their capabilities to best-of-breed EMS platforms or

other trading systems. The Moxy OMS, acting as the hub, then efciently

and easily communicates the resultant, post-trade, information to

the Portfolio Manager, Back Ofce and settlement systems, and the

portfolio accounting system.

Moxy At the Core of an Effective Trading Desk

With more than 800 rms worldwide relying on Moxy every day, the

Moxy OMS both enables and extends the Traders capability to act on

and interact with the markets. Moxy employs industry standard FIX

messaging to enable a trader to direct their orders to a diverse set of

destinations. Using this industry standard protocol and the SunGard

Transaction Networks standard FIX network, a trader using Moxy can

send their orders electronically to over 250 sell-side rms. Moxy also

enables the trading desk to access over 50 algorithmic strategies from

18 different brokers. This access to algorithmic trading strategies fromwithin Moxy allows a trader to expedite, and simplify their workow

when entering a trade.

As liquidity has fractured in the marketplace and concern over

information leakage has grown, so too has the need for access to

anonymous liquidity sources or Dark Pools. Moxy enables the trader

to effectively and quickly access these dark pools with standard

integration to the leading dark pool providers including Liquidnet,

BlockCross, Aqua and Pipeline.

The second essential component of the Moxy OMS is extending the

capabilities of the traders. Moxy extends the capabilities of the trader

through FIX based integration and a exible, yet powerful architectureto create specic integrations with third party providers of the traders

choice. Traders wishing to exercise their choice in looking for precise

tools such as an EMS can use Moxys standard EMS workow system

to extend their trading to those tools. Another method for extending

the reach of the trader through Moxy is to leverage the powerful tag

mapping functionality, custom elds, and exible architecture which

allows traders to effectively reach trading tools they deem necessary

to compete in the marketplace. By enabling traders to affect the

marketplace from directly within Moxy and insuring that they can

extend their reach to best-of-breed tools of their choice, Moxys role as

a core tool and hub of the trading desk is evident.

Choice, Precision and Unification The Role of Tools in Support of Trading

The debate of EMS vs. OMS continues while missing the mark. The methods traders use to thrive in the

ever-changing marketplace are critical to creating success. Trading desks and traders require tools that are

built to precisely address their nuances of implementing and succeeding in the markets. EMS and OMS

platforms were created for specific tasks relating to a firms investments. While often times there are slight

overlapping areas of functionality, both platforms have areas of significant strength.


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Continuous Improvement to Meet Ever Changing Market Needs

Moxy continues to adapt and grow through the changing markets

to ensure that investment rms, the trading desk, and traders have

the tool they need to manage their business. With Moxy, we utilize

a stringent validation method to insure that we are improving,

enhancing or changing the functionality necessary to support the

variety and evolution of needs of the trader. Our focus, driven by our

leading 800 strong customer base, will be on ease-of-use, standard

integrations to critical tools or destinations in an effort to extend the

traders capabilities, and advanced integration technology to not only

extend the traders reach but also to simplify the management of a

trade. In addition, Moxy will continue to enhance and improve its

trading reach to new instruments, international markets, as well as

adapt to market structure changes. This approach ensures that as

new instruments are adopted, new markets are approached, and

market structures change, Moxy will be there to empower the trader

by integrating into a rms trading strategy, not forcing a trader to

follow a vendors standard workow or process.

Moxy Supporting Choice while Enhancing

Tomorrows Trading DeskMoxy functions as an enabling hub; connecting and extending

to the necessary business units within a rm, best-of-breed trading

tools, and trading destinations from the trading desk. This allows the

traders to effectively manage their trading business while ensuring

that the trader can exercise their choice in implementing the tools

necessary to deliver on their precise trading needs.

Free White Paper:

The Buyside and the Three Phase Evolution of Electronic Trading

The Buyside and the Three Phase Evolution of Electronic Trading

describes how the buysides insourcing of the execution function

is occurring at a time of seismic change for not only buyside rms,

but also brokers and execution venues. It goes on to illustrate

the reasons for the rapid adoption of electronic trading and how this

new world will evolve in three distinct phases. Gain a better

understanding of the buyside framework and its changes and a

vision for the trading platforms that will support this new world.

Get your free copy at www.advent.com/oms

About Moxy

With more than 800 clients relying on Moxy every dayfor trade order management, Advent sets the standard

for trading workflow. Moxy streamlines all aspects

of the trading process from portfolio construction

through settlement providing a stable, centralized

location for making and executing trading decisions.

With easy access to critical data, a simple interface and

a customizable workflow, Moxys advanced trading and

order management capabilities expedite investment

decision making.

About Advent Software, Inc.

Advent Software, Inc. (www.advent.com), a global

firm, has provided trusted solutions to the worlds

leading financial professionals since 1983. Firms

in 60 countries use Advent technology and manage

investments totaling nearly US $18 trillion. Advents

quality software, data, services and tools enable

financial professionals to improve service and

communication to their clients, allowing them to grow

their business while controlling costs. Advent is the

only financial services software company to be awarded

the Service Capability and Performance certification for

being a world-class support organization.

Advent Software, Inc.

600 Townsend Street

San Francisco, CA 94103

US: (800) 685-7688

London: +44 (0)20 7631 9240

www.advent.com

Tim DeckerProduct Manager, Electronic Trading and Connectivity

Advent Software, Inc.


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SPECIAL

REPORT

What makes InstaQuote market leading?

InstaQuote enables institutional investors to access a diverse pool

of leading-edge liquidity systems and venues for equity, options and

futures executions including Bank of Americas latest multi-asset class

algorithms. In addition, InstaQuote is tightly integrated with order

management system (OMS) providers which includes a proprietary

sell-side OMS for broker dealers. Our sell-side OMS, is unique in thatit allows broker-dealers to receive orders from buy-side OMSs and

from InstaQuote users. For buy-side clients, our multi-broker routing

service allows clients to manage brokerage relationships on the

Street through the InstaQuote Network. InstaQuote also integrates

with prime brokerage stock loan desks and provides regulatory

reporting capabilities allowing clients and broker dealers to focus less

on technology and regulatory issues, and more on trading.

This past year, InstaQuote released Optronics; a leading execution

platform for options spreads. Optronics allows clients the ability to trade

Multi-Leg Options orders electronically with enhanced functionality that

incorporates complex option orders with the underlying equity order.Optronics makes trading buy-writes, delta and delta neutral trades as

easy as a single leg option.

Our Options Smart Order Router (OSOR), which executes the option

orders for Optronics, enables users to route spread orders across the

ISE and CBOEs complex order books while simultaneously sourcing

all option exchanges for liquidity at better prices. In addition, OSOR

eliminates the legging risk for clients and offers the potential for

price improvement.

Additional Benefits:

A M ult i-brok er rout ing net w orkthat allows electronic order routing

from InstaQuote to various brokers, saving time, desktop real estate

and money. Our multi-broker FIX network provides real-time lls,

which eliminates the need to re-key order information and reduces

the possibility of trade breaks. Bypass the need for third party FIX

networks by using InstaQuote and send orders to brokers over a

simple Internet connection.

Bank of Americas InstaQuote

What is InstaQuote?

InstaQuote is Bank of Americas execution management system for trading equities, options and futures in use by over

5000+ trading professionals. Using state-of-the-art data compression algorithms, InstaQuote is a fast and reliable

platform for both buy-side and sell-side trading professionals. InstaQuote is the electronic gateway to managing orders

by aggregating Direct Market Access (DMA) destinations, algorithms, alternative trading systems (ATS), and other

broker-dealers, which enables our clients to have the ultimate execution flexibility.


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SPECIAL

REPORT

The Charles River Investment Management System (Charles River

IMS) is a comprehensive multi-currency, cross-asset, front- and middle-

ofce software suite. It combines state-of-the-art and industry standard

technologies to ensure an open, exible system that is scalable,

functionally rich, and easy-to-use and integrate. Charles River IMS

provides complete trade-cycle support for all asset classes and features

several modules to lower costs and risk while increasing operational

efciencies, including:

Charles River Manager for decision support, portfolio

management and modeling

Charles River Trader for order management and electronic

trading

Charles River Execution Management for management and

execution of orders

Charles River Compliance for real-time pre-trade, post-execution

and end-of-day compliance monitoring

Charles River Post-Trade for centralized management of trade

matching, conrmation, and settlement workow

Charles River TBA for automated and streamlined delivery and

settlement of MBS pools

Charles River Anywhere for secure monitoring and management

of Charles River IMS information via any Web-enabled device

Charles River IMS incorporates global real-time electronic trading

via FIX through the Charles River Network, a fully-integrated, broker-

neutral nancial network that provides access to liquidity venues,

including dark pools. Comprehensive FIX Network Services include: FIX

trade support; FIX network and software management; FIX testing andcertication; and connectivity management.

Charles River Execution Management

Available as a stand-alone solution or as a tightly-integrated component

of Charles River IMS, Charles River Execution Management meets buy-

side clients growing demand for greater control over trade execution

strategies and best execution. It provides the functionality, scalability,

connectivity and speed to efciently manage and execute multi-currency

orders for all asset classes, including: equities, FX, xed income, options,

futures and complex derivatives. For clients that also use other Charles

River IMS modules, the result is improved workow, controls and audit

trails over third-party EMS alternatives all with one system.

Advanced analytics functionality and decision support for portfolio

management give clients critical information to achieve best execution

and STP. From a single desktop, traders can access easy-to-use

functionality such as: algorithmic trading, pre- and post-trade Transaction-

Cost Analysis (TCA); direct market access (DMA); automated order routing;

real-time pricing and market depth; program trading; integrated watch

lists and charting; as well as extensive customization options.

Algorithmic Trading

Access over 300 algorithms from 35 algorithmic brokers.

Take advantage of customized sell-side algorithms or access new

liquidity destinations -- without the need for additional software

upgrades.

Pre- and Post-Trade Transaction Cost Analysis (TCA)

Direct integration with pre- and post-trade TCA providers.

Integrate pre-trade TCA estimates directly into the trading blotter.

Navigate to other value-added content by linking blotter with

embedded web pages.

Direct Market Access (DMA)

Route DMA orders directly from the blotter to exchanges, ATSs,

ECNs and other execution venues.

Automated Order Routing

Provides one-stop point of control and support for execution and

FIX-based electronic trading.

Route orders to hundreds of global Charles River Network broker-

dealer destinations, as well as third-party algorithmic tradingofferings or block trading desks.

Advanced FIX auto-routing automates common trading workows.

Real-time Pricing and Market Depth

Gain complete market view and required integrated data for direct

market access.

More than a dozen integrated partnerships with real-time data

vendors, including: Reuters, Bloomberg, and FT Interactive.

Monitor real-time pricing directly within the order blotter or leverage

data to track price slippage of a particular order or program.

Low-latency API Architecture ensures tight market data integration.

Charles River Investment ManagementSystem (Charles River IMS)


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Tight integration with Charles River IMS modules deliversimproved workflow and audit controls compared to stand

alone third-party EMS alternatives. Tom Driscoll

Program Trading

Create, trade, monitor and update programs.

Act on an entire program as easily as a single order.

Integrated Watch Lists and Charting

Easily track market movements of individual securities or

portfolios.

Link charts directly to blotter watch window or order blotter.

Extensive Customization Options

Congurable analytics to determine preferred execution paths.

Support for indications of interests (IOIs), dark pools, and

integration with popular block trading and crossing systems.

Customizable and automated smart routing logic and criteria.

Automated tracking of directed brokerage, commissions and fees.

Future Releases

Script strategies and build algorithms via an optional strategy

server that includes an algorithmic engine and user interface.

Easily access user-dened strategies from the real-time blotter.

Route/modify orders with one click and view order book positions

via a DMA cockpit control.

Evaluate order characteristics, market conditions and/or

pre-trade TCA for optimal routing strategy.

Automatically populate symbols from the order blotter to build

watch lists for a particular portfolio manager, account or portfolio.

Link lists back to the blotter and other decision support windows.

Create lists for any security whether or not there is an active

order on the blotter.

Filter important announcements/headlines against entire blotter

or watch list.

User-dened placement proles for fast direct routing with

one-click execution.

Charles River Development is an award-winning

provider of technology systems and services for

investment firms in the institutional, mutual fund,

banking, hedge fund, wealth management, insurance

and pension industries. As of June 30, 2008, Charles

River supports more 290 clients in 30 countries with

comprehensive and innovative products and services

that enhance their business. The firm also offers a

full range of implementation and managed services

(hosted and remote application management).

Recognizing the importance of local knowledge and

experience to meet clients needs, Charles River

maintains headquarters in Boston, primary offices in

London, Melbourne, New York, Paris, Singapore and

Tokyo, and has a local presence in major financial

centers around the globe.

Charles River Development

7 New England Executive Park

Burlington, MA 01803

Brian Basiliere, Sales Executive

+1.781.238.0099; +1.781.238.0088 fax

[email protected]

Tom DriscollVice President, Sales and Marketing

Charles River Development


12/25



SPECIAL

REPORT

Why Choose the Eze OMS?Speed and functionality

With desktop real estate at a premium, weve streamlined the

investment process by converging all the functionality together in one

core application and maximizing your efciency by reducing the number

of clicks (and windows) it takes from order entry to execution. You can

completely manage an order from idea generation through settlement,

in one place. And, because your EMS functionality coexists with your

OMS, you can interact with that order in the OMS and the EMS at any

stage in the life of the order. When a trader enters an order directly

in a montage, the Eze OMS seamlessly runs compliance and position

checking before sending it to the market. Then, if you modify an order

in the blotter, that order is updated throughout the system in real time.

Whether youre working in the OMS or the EMS, youre always working

with the same, consistent, up-to-date information. No more staging and

swiveling, and no more mis-matched orders.

A technology solution that will scale with the growth of your firm

When we decided to rethink the OMS, we knew that the right architecture

was instrumental in delivering embedded EMS functionality without

adding latency. Our platform is built on a Service-Oriented Architecture

(SOA) giving it the exibility and scale to meet the technology needs

of tomorrows investment rm. Leveraging SOA, were able to support

the growing demand for more advanced functionality coupled with the

rising volumes of orders and market data.

A partnership approach with proven results

At Eze Castle, we look at ourselves as a technology partner, not just

a vendor. We are frequently partnering with our clients to build out

the functionality they need. Since launching our enhanced OMS with

embedded EMS in June 2007, we have worked closely with our clients

to continue to enhance and improve our EMS functionality. This

means the Eze OMS EMS functionality has been tried and tested by

our clients in a true, real-time trading environment. Weve spent the

past year tuning it to be exible to meet your unique business needs

and workows.

An OMS that can EMS By Jeff Gavin, Electronic Trading Product Manager

If you use both an OMS and an EMS, youve probably already heard of the Swivel Chair the common side effect

of the OMS-or-EMS conundrum. As the coexistence of these systems on the desktop grew more commonplace, the

limitations of their FIX relationship grew more apparent and more frustrating to the buy-side. Vendors and the buy-side

alike wondered what could be done to get these two systems to communicate better. And, most of the major vendors

have either announced or launched their own solution. At Eze Castle, instead of slapping a new Band-Aid on an old

problem, we decided to rethink the OMS. We knew that in order to achieve true harmony between systems, we needed

to go beyond FIX integration. Weve embedded EMS functionality into the Eze OMS giving you the robust functionality

of an OMS with the speed-to-market of an EMS. Now you have one blotter, a single point of trade entry, a consistent

look-and-feel, and no more swivel chair effect.


13/25


BNY ConvergEx Groups Eze Castle Software is a premier

provider of investment technology solutions to global

investment managers. Our technology incorporates

a real-time open architecture to streamline the

investment cycle for all asset classes from idea

generation through settlement. The Eze OMS provides

functionality to support Portfolio Management,

Compliance, Trading, and Operations. Today, over

380 buy-side firms use our technology to manage

their investment process. Eze Castle employs more

than 300 industry professionals worldwide with

offices located in Boston, New York, Stamford CT,

San Francisco, London, and Hong Kong.

About BNY ConvergEx Group

BNY ConvergEx Group, LLC provides premier institutional

agency brokerage and investment technology solutions

designed to deliver a comprehensive, integrated

approach to the investment cycle, from idea generation

and trade execution to clearance and settlement.

The Company offers a broadly diversified suite of

services providing innovative solutions in liquidity and

execution management, investment technologies and

intermediary and clearing services.

Eze Castle Software LLC

12 Farnsworth St., 6th Floor

Boston, MA 02210

+1 646-346-1140

[email protected]

www.bnyconvergex.com

Jeff GavinElectronic Trading Product Manager

Eze Castle Software LLC

Client Support that doesnt end after implementation

We approach our business as a service provider. We believe that

technology and support go hand-in-hand. Traders dont have time to

relearn and adapt their workow at every upgrade. Instead, we couple

our technology with a support team that is dedicated to ensuring our

clients are using the Eze OMS to maximum capacity and efciency.

We provide high-touch, consultative support that doesnt end after

implementation.

Key Features of the Eze OMS

Direct access to deep and natural liquidity

Easily expose orders to dark pools, directly from the blotter.

Single-click execution to over 40 global markets accessing 95%

of the worlds liquidity directly from the OMS blotter.

Multi-broker access to algos, crossing networks and FIX routing.

Access to deep liquidity for Options contracts through LiquidPoint.

Access to natural liquidity through integrated Crossing platform.

Integration with over 350 algorithmic strategies from 35 brokersdirectly into the OMS blotter.

A full feature set of EMS and OMS functionality

Embedded Level I and II, Time & Sales, Market Watch and Charts.

Embedded transaction cost analysis.

CSA option for managing commissions.

Open, scalable SOA optimizing performance.

Full multi-asset class OMS feature set including modeling,

compliance and real-time P/L through a single system.

We couple our technology with a

support team that is dedicated to

ensuring our clients are using the

Eze OMS to maximum capacity

and efficiency.


14/25



SPECIAL

REPORT

Fidessa LatentZero led the market with the rst buy-side order and

execution management system (OEMS). Combining the full power ofleading OMS and EMS solutions into a single system, and eliminating

the challenges associated with staging orders between two applications,

Fidessa LatentZeros Minerva OEMS is now a well-established and

proven solution.

Minerva OEMS provides a complete full asset buy-side order

management and trading environment. It includes real-time position

keeping and P&L, portfolio analysis and drill down, order management

workows, and pre and post trade investment compliance, and meets

the demands of global regulators and directives. Support is provided

for equities, xed income, money markets, foreign exchange and listed

and OTC (credit and equity) derivatives.

Fidessa LatentZero also offers the standalone EMS Workstation

application, (previously marketed under the umbrella of their parent

company, Fidessa), which is an internet-deployed, low-latency trading

workstation for equities and listed derivatives in global markets. It

provides out-of-the-box access to a comprehensive set of execution

venues, with global market data and news provided from Fidessas

high performance ticker plant. Functionality in the EMS Workstation,

including real-time, full-depth market data with IOIs, news, charts and

fundamentals, and additional trading functions, has been integrated

into the Minerva OEMS,

Contrary to earlier predictions, EMS vendors do not seem to be moving

into the OMS space. Given the huge undertaking of developing rich

OMS functionality to add to an EMS, it is perhaps not surprising.

Market conditions have also played their part in the continued

dominance of the OMS. With current levels of market volatility and

wariness among participants, compliance and control have become

even more important. The OMS background in portfolio-level transaction

and controls means that the degree of functionality offered compares

favourably to that of EMSs whose roots are at block-order level.

Within the Minerva OEMS, tight process controls and permission

management, along with integrated investment compliance, greatlyreduce the risk of investment or trading errors. Comprehensive

mandate, regulatory and management restrictions are supported

and checked throughout the investment process, ensuring portfolios

stay within guidelines at all times. Order aggregation and portfolio/

strategy allocation policies can be dened, which, combined with

a full transaction history and audit trail of all user activity, meet the

client order handling, record keeping and transaction reconstitution

requirements of MiFID and other major regulators.

Indeed the biggest change in market conditions for European

players is the advent of MiFID, and the signicant growth in liquidity

destinations it has brought about. Access to these destinations and

ECNs is increasingly important, and the optimum solution has proved

to have direct access from the order management platform. In effect,

the Minerva OEMS has become a liquidity aggregator.

It provides single-click, low latency connectivity from the blotter to over

300 brokers, broker algorithms and global DMA destinations, as well as

connectivity to all major alternative trading systems, such as LiquidNet,

ITG Channel and Pipeline for equities; TradeWeb, Bloomberg AllQ,

MarketAxess and BondVision for xed income; FXall and FXConnect for

foreign exchange, among others.

Minerva OEMS provides pre-trade order size analysis and transaction

cost estimates, as well as IOIs, trade history and news to assist traders

in deriving the optimum trading strategy for an order or list of orders.

Level 1 and level 2 data is integrated from over 100 global exchanges,

and calculated columns with heat maps enable traders to set up their

own analytics and alerts.

In an era that demands best execution and places greater demand

for transaction cost analysis, broker neutrality remains a big issue,

and one on which Fidessa LatentZero has not compromised. Vendor

products are becoming ever richer in terms of functionality and are

OEMS Leads The WayBy Richard Jones, CEO

While it was fashionable twelve months ago to debate whether any of the buy-side EMSs

would move into the OMS space and threaten OMS vendors, the discussion has moved on.

The accepted position now is that of the OMS and EMS integrated into a single system,

and the OMS vendors are leading the way.


15/25


nally displacing sell-side supplied applications in the EMS and OMSspace. Some vendors have gone down the path of becoming brokers;

Fidessa LatentZero has not established its own ghost broker, and does

not charge transaction fees for use of its managed trading network.

That network, the LTN, has been one of several continuing benets to

clients brought about by LatentZeros acquisition and relationship with

Fidessa. LTN is underpinned by Fidessas well-established global FIX

network that is used by over 300 of the worlds major brokers, with strong

coverage in Asia. It has helped Fidessa LatentZero to maintain the lowest

latency in the industry, already enjoyed by the global sell-sides among

Fidessas extensive client base, and has enabled the company to focus alltheir development efforts on their core expertise building buy-side front

ofce applications.

Looking forward, Fidessas rich market data and EMS technologies that

have been widely adopted by the sell-side are also being integrated into

Minerva OEMS, accelerating development plans for buy-side products. The

capabilities of Fidessas Blue Box algorithmic trading system, which

enables sell-side users to script their own algos and offer them to the

buy-side, will also be integrated into Minerva OEMS, enabling asset

managers to script their own algos directly.

Because the order management platform is so ingrained in the operational

processes of an asset manager, implementation or upgrade projects have

tended to be run by IT departments within the constraints of the IT budget

and resources. Sidestepping this situation by offering regular and automatic

upgrades, a hosted ASP model is the next step forward alleviating the

challenges associated with traditional OMS implementations and providing

the agility necessary for rapidly changing market conditions.

Underpinning the development of the OEMS is a unique technological

architecture that supports high levels of throughput with no loss

of performance. That architecture, previously only available to the

sell-side, has been the foundation of Fidessa LatentZeros solutions

from their very inception and enables them to develop and scale their

applications in line with changing demand. Traditional database centric

OMS vendors will face challenges in the EMS space, as their technology

has not been designed to handle todays high transaction and market

data volumes, resulting from the increased use of algorithmic trading

and DMA. In addition, Minerva OEMS is scalable and can be deployed

globally if required from a central server, with the same real-time

performance in all locations, which is an important product differentiator

for the increasing number of multi-site managers. The Minerva OEMS

is used by small specialist managers and hedge funds, through to the

worlds largest institutional buy-side rms.

Richard JonesCEO

Fidessa LatentZero

Fidessa groupis a world-leading supplier of multi-asset trading,

portfolio analysis, decision support, investment compliance,

market data and global connectivity solutions for both the

buy-side and sell-side globally. Available as a simple workstation

or as an integrated application suite, the Fidessaand Fidessa

LatentZeroproduct suites are built on the clear vision of

providing the richest functionality, coverage and distribution tothe financial markets community.

The Fidessasuite is used by 85% of tier-one, global equity

brokers providing sophisticated trading, market data, order

management and execution capabilities to all tiers of the

sell-side.

The Fidessa LatentZerosuite is used by the worlds largest

asset management firms through to smaller specialist managers

and hedge funds, and provides comprehensive portfolio analysis,

real-time P&L, what-if analysis, investment compliance, order

and execution management, and post trade processing tools,

across all asset classes, to all tiers of the buy-side.

Fidessas global network carries over 95 million messages a

month covering DMA, Care and Algorithmic orders, Indications

of Interest and FIX Allocations between around 1,500

buy-sides and 255 brokers across 92 exchanges worldwide.

Head-quartered in London and with offices in New York, Boston,

Tokyo, Hong Kong, Paris, Toronto and San Francisco, Fidessa

groupserves around 22,000 users across 520 clients globally.

Fidessa groupwas founded in 1981, has revenues of $270m,

employs over 1,100 people and has been fully listed (LSE:FDSA)

since 1997.

Fidessa LatentZero160 Federal StreetBoston MA 02110+1 617-235-1000

1 Alfred PlaceLondon WC1E 7EB+44 (0) 20-7462-4200

Email: [email protected]: www.latentzero.com

www.fidessa.com


16/25



SPECIAL

REPORT

The following is an overview of Precision Tradings capabilities:

Real-time blotter analytics with complete integration of pricing

and analytical data from 3rd party providers and other EMS

functionality including effective program and list trading tools.

Multi-currency, multi-asset (equities, xed income, international)

including extensive tools for short strategies and 130/30 fund

management. Extensive connectivity with established algorithmic trading

providers and dark pools

Connectivity with all major ECNs

Electronic order routing via FIX including allocations and IOIs

Integration with third party TCA (Transaction Cost Analysis)

providers

Robust portfolio modeling & rebalancing, comprehensive

what-if analysis across asset classes

Tax lot tracking tools for tax-efcient portfolio management and

trading strategies

Efcient family and group trading capabilities

Multi-security swapping features along with condition if/then

order generation

Real-time pre and post trade compliance monitoring

Extensive commission tracking and reporting capabilities

High level of customization available including user-dened

workows and custom reporting via Microsoft SQL Server

Reporting Services

In addition, INDATA provides other value added modules

as part of the IMS suite of products including:

Optional Multi-asset, multi-currency portfolio accounting module

with integrated custodial reconciliation tool and billing system

Superior GIPS compliant performance measurement, including

daily performance measurement and attribution against major

benchmarks with complete client reporting module Web-based front ofce tool for holistic client view which integrates

OMS, portfolio management, performance & attribution alongside

full CRM (Client Relationship Management) functionality

INDATA is a Microsoft Certied Partner and IMS utilizes a single Microsoft

SQL Server 2005 as its database platform. As an open architecture

system, modules can be combined to provide a total solution, or

licensed separately to provide a best-of-class solution.

Precision Trading, Part of the INDATAIMS Suite of Products By Dave Csiki, Managing Director

IMS (Investment Management System), from INDATA, is a suite of products that can be licensed as a stand

alone trade order management system (OMS), or as a completely integrated front to back office solution

that effectively connects portfolio managers, traders, executing brokers, compliance officers and back office

personnel in real-time, resulting in operational efficiency and STP (straight-through processing).

Precision Trading is one of a select few broker neutral OMS products and the only network neutral solutionwithin the OMS space. Unlike other OMS providers, we dont take a toll from your brokers by maintaining

our own FIX network. This sets INDATA apart.

For established, diversified asset

management organizations that

are already using a number of

independent, industry-accepted

OMS and EMS platforms, these

benefits are achieved by seamless

integration between systems.


17/25


What is Right for Your Firm? The EMS/OMS Debate

The combining of EMS components into an OMS application makes

sense for many segments of the market and INDATA provides extensive

functionality while maintaining connectivity and neutrality with EMS-

only providers. For most diversied asset managers, a close integration

of existing OMS/EMS systems is essential in order to eliminate manual

processing and redundant functions.

Utilizing independent EMS/OMS systems can have benets which

include the combination of best of class functions, increased speed, as

well as the ability to have multiple liquidity sources in one front end.

For established, diversied asset management organizations that are

already using a number of independent, industry-accepted OMS and

EMS platforms, these benets are achieved by seamless integration

between systems. From this perspective, offering a highly integrated

solution between OMS and EMS front-ends is highly desirable.

In addition, much of the OMS/EMS trend thus far has been driven by

vendor mergers of OMS/EMS systems and desire for cross marketing

opportunities to merge client bases within these new entities rather

than outright industry demand.

The bottom line: Firms have to determine what is best for their needs

rather than being tied in to a single solution provider. Typically, this

arrangement is neither broker nor network-neutral which can create a

real conict of interest.

Additional Considerations: Hosted/ASP vs. In-house

Outsourced or hosted solutions make sense for certain asset managers

who do not have the wherewithal to maintain technology infrastructures

or who are already used to operating on hosted or ASP platforms.

INDATA offers Precision Trading on both a hosted/ASP environment as

well as an in-house solution. INDATAs ASP product is mature and has

been selected by leading global asset management organizations.

INDATA is a leading industry provider of software

solutions for buy-side firms including trade order

management (OMS), compliance, portfolio

accounting and front-to-back office. The companys

IMS (Investment Management System) product

suite provides an integrated platform based on the

latest database technology (Microsoft SQL Server

2005) that consists of functional modules for

portfolio modeling, pre and post-trade compliance,

trade order management, portfolio accounting &

reporting, performance measurement & attribution,

composite maintenance, billing, and web-enabled

CRM. Implementation of the system provides

buy-side firms with operational efficiency and

straight-through processing capabilities.

Greenwich

71 Arch Street, Second Floor

Greenwich, CT 06830

San Diego

12526 High Bluff Drive, Suite 235

San Diego, CA 92130

Toll Free: 888-454-4060

Tel: 858-847-3000

Fax: 858-509-9663

For additional information, please contact Sylvia

Morgan: [email protected]

www.indataweb.com

Firms have to determine what is best for their needs rather than being tied into a single solution provider. Typically, this arrangement is neither broker nor

network-neutral which can create a real conflict of interest.


18/25



SPECIAL

REPORT

Upon completion of that rst consulting project, the companys

founders both recognized the signicance of the FIX protocol and the

future impact it would have on the nancial industry. They decided to

launch InfoReach and one of the industrys rst pre-built FIX engines.

For several years, they continued working on in-depth consulting

projects for many well known institutions, international exchanges, etc.

After many years of consulting and building FIX infrastructures from the

ground up, many of our clients began requesting a front-end GUI which

can monitor and control orders.

Recognizing this need, the company quickly built a tool kit for the

rapid deployment of a trading system. This was in essence the birth of

todays InfoReach TMS trading platform. In 2002, after many custom

deployments, we decided that we had a formidable enough product to

compete with the existing vendors and we ultimately made the decision

to productize the trading system. Today, we offer two core products, the

InfoReach FIX Engine and TMS which can be deployed either locally or

via ASP.

We currently are headquartered in Chicago with additional ofces

in New York and Europe that are geared towards sales and marketing.

Our philosophy and focus have always remained the same, to build

a superior technological product. Our products dont just look good,they are solidly built and well respected within the industry. We are

condent that people which are serious about technology and need

a product they can trust will call InfoReach. Recently, a major buy-side

rm summed our approach up in one sentence We like InfoReach

because unlike your competitors, you didnt go out and carpet bomb

the industry. Our translation, we didnt go out and bite off more than

we can chew. Aside from technology, we realize that service must be

superior in order to survive on Wall Street.

We have grown the business in a manner which has allowed our

products to evolve while maintaining a high-level of customer satisfaction.

Balancing strong technology and customer demands has been the key

to our success. The InfoReach TMS was rst deployed in 1997. Through

the years our strategy has been to incorporate all customer requested

functionality into the TMS. After ten years of development, we have the

largest set of functionality offered out of the box. What does this mean

to our clients? Most importantly, less functionality has to be developed

by programmers, resulting in a quicker deployment at a lower cost.

Since day one, we have never charged for set-up of the TMS. The

product itself is a broker neutral execution management system

capable of trading global equities, options, futures and forex. It is

most commonly used buy hedge funds, asset managers and sell-side

program trading groups. Users can trade single orders or baskets either

manually or algorithmically. Key components would include our custom

built algorithms with which we supply our customers the code. The

reason we do this is so they could customize our algorithms to meet

their needs with relative ease.

The TMS is also integrated with most broker dealer provided

algorithms. The combination of proprietary algorithms and broker

provided gives our clients true neutrality with regard to algorithmictrading. Other key components are connectivity to the street via the

InfoReach FIX Network, transaction cost analytics and interactive

charting capabilities. Our interactive charting is important to many of

our clients because when trading a large set of names it is quite difcult

to monitor executions. What we did was create charts which monitor

the orders real-time and allow users to interact by trading off of the

charts. This is useful because traders can quickly identify and act upon

outcast orders, slippages, etc.

InfoReach

InfoReach was founded in 1995. What began as a consulting collaboration has evolved into one

of the premier software companies within the financial technology marketplace today.


19/25


20/25



SPECIAL

REPORT

How does Morgan Stanley achieve such impressive

system reliability?

Technology and trading blend together and its critical to get them both

right. Our platform is fast and reliable even during volatile markets because of our commitment to technology and because of our technical

and trading expertise.

Electronic trading is all about the details. Recent stressful situations have

exposed problems with other rms software, with their architecture, or

with their capacity. That has driven new clients to Morgan Stanley.

We do extensive work to make sure the uptime of our platform is

near 100 percent because without speed and stability, you dont

have anything.

How does your EMS fit into the picture?

Passport is an EMS that gets our clients to the market however they

want with exible tools and high-level service. For us, a discussion

about EMS quickly morphs into the bigger technology picture because

Passport really is a front-end application with an entire infrastructure

behind it.

That same infrastructure, through MSET, provides many ways for

clients to trade through us. Passports synergies with our prime

brokerage offering gives our clients a very good workow experience.

Through all avenues, we deliver excellent customer service and keen

understanding of market structure, liquidity and trading tools.

As part of our offering, that overall picture, our EMS is global,

multi-asset, and trading oriented. Passport goes along with the trading

mentality of being very fast, very stable, and very core to trading. For

our EMS and our overall infrastructure, clients consistently give us highmarks in all these areas.

Why did you decide against being a broker-neutral EMS?

What exactly does broker-neutral mean? Do you have to be open to

everybody? Theres a slippery slope there. A lot of people claiming to

be broker-neutral dont have access to some important brokers, and

that turns into frustration for clients.

We are up-front about what we offer. Our global, multi-asset EMS is tightly

coupled with our prime-brokerage application. For clients interested in

multiple components, we connect to the truly broker-neutral systems.And from a broker perspective, we have signicant reach into various

alternative liquidity pools through our trading tools.

What are the latest destinations in your global reach?

Morgan Stanley was the rst broker/dealer to offer direct market

access (DMA) in India, executing the rst trades on July 11. We did so

after receiving formal approval to deliver DMA to Foreign Institutional

Investor register rms for both equity and listed derivatives from

the National Stock Exchange and for equity from the Bombay Stock

Exchange. Passport was certied by both exchanges. This is a prime

example of our focus on global multi-asset.

Morgan Stanley is One of Few Firms toPass Markets Ultimate Stress Tests

During the unbelievable August 2007 volume spikes in the market, one firm sustained uninterrupted electronic trading:

Morgan Stanley. And during last Januarys high-volume, high-volatility conditions, Morgan Stanley delivered

uninterrupted electronic trading, one of only a couple firms that could legitimately make the claim.

How has Morgan Stanley withstood the harshest of market conditions while the competition has succumbed

to these real-life stress tests? A combination of outstanding technology, execution expertise, and market expertise,

says Bill Neuberger, managing director and co-head of Morgan Stanley Electronic Trading (MSET).

He explains how Morgan Stanleys technology infrastructure, which is fronted by execution-management system

(EMS) Passport and backed by Morgan Stanleys execution consulting services, maintains nearly 100-percent

uptime while delivering a plethora of services and benefits to traders.


21/25


What about other developments?

We are rolling out an upgraded Passport, which incorporates the latest

technology, including greater exibility and customization in terms of

how traders use Passport.

Another primary focus is our expanding the reach of the markets both

for cash and derivatives.

In keeping with our philosophy on the trading side and on the liquidity

side, we feel transparency is very important. Weve built into Passport

liquidity maps that show our clients where theyre executing. Its

in real time so they can identify the relevant liquidity centers for

particular orders.

What drove the need for liquidity maps?

We are skeptical about a lot of whats going on in dark pools, and were

judicious about which ones well connect to. We constantly monitor the

execution and the reversion that happens from those executions and

adjust which dark pools were going to.

There has been quite a bit of information leakage happening under

the banner of dark pools. We want clients to understand that we are

conservative with dark pools. Weve been entrusted with best execution

for their orders, including to whom were going to send an order.

Liquidity maps help us deliver transparency. We can actually tell clients

in which dark pool their trades were executed.

Were making sure were sourcing quality dark liquidity. Were looking

at the print in aggregate as part of the service. Did stocks revert? Did

something funny happen before any of these prints went up? And were

minimizing the amount of interaction with speculators who are pokingaround dark pools to see whats going on with institutional order ow.

Youve highlighted the importance of speed.

How do you quantify it?

We measure different aspects of speed. On the front end, its making

sure the market data is getting through in a timely fashion. How quickly

can an order get out the door? It happens in milliseconds.

Once an order hits our infrastructure, how long does an order actually

take either to start trading if its an algo order or get out to the marketif its a DMA order? It takes approximately three or four milliseconds

to get the order through, validate it, do all the limit-checking, and get

it trading.

We have recently redone our whole trading infrastructure to streamline

the message side and the number of hops. Were down to the low-digit

milliseconds in terms of that latency.

Additionally, Passport has a real-time link to our stock-loan group so

theres no latency in terms of understanding if theres been a pre-locate

for a short-sell or even if one has to be obtained on the y. If the stock

is there to be borrowed, locate numbers come back.

What advantages does Morgan Stanley Electronic

Trading hold over the competition?

MSET delivers a global electronic trading offering thats reliable and

fast. Plus we deliver value through our phenomenal coverage and

execution consultancy services. Passport serves as a window into the

Morgan Stanley franchise cash, derivatives, structured products

and nancing.

We have been told repeatedly that our holistic approach is a key reason

clients choose us as a partner. Were not just providing our clients withelectronic trading services; were providing them with Morgan Stanley.

Morgan Stanley

1585 Broadway

New York, NY 10036

877-761-MSET (8653)

www.morganstanley.com/mset

[email protected]

Bill Neuberger,Managing Director and Co-head ofMorgan Stanley Electronic Trading (MSET)

Passport serves as a window into the Morgan Stanley franchise

cash, derivatives, structured products and financing.

Through all avenues, we deliver

excellent customer service and keen

understanding of market structure,

liquidity and trading tools.


22/25


23/25


offers unique tools to monitor latency in real-time for various executiondestinations and dynamically adjust routing decisions when required.

Execta includes a robust complex event processing engine where rules

can be modified in real-time. The Tethys messaging bus handles over

350,000 market data messages per second on a single dual processor

Intel machine.

Flexible

Execution Management Systems must be exible enough to handle

increasingly higher data rates as well as data from multiple sources

including internally published analytics such as option greeks. Exectas

component based, scalable architecture is ideal to meet these challenges.

With the explosion of trade venues in global markets and the complexities

of the US options markets, the ability to monitor latency and adjust fordifferent cost structures associated with various execution destinations

gives our clients a competitive edge.

Dynamic market microstructures call for uid and adaptive analytics

and algorithms. Software and analytics vendors need to be extremely

nimble to ensure that their customers benet from such rapid evolution,

and are not left at a disadvantage to other market participants. The Amex

recently introduced a binary option- within two days we were able to enable

algorithmic trading and hedging of this option type at a clients request.

Adaptive

Execta order placement analytics are adaptive and market aware.

Intraday volatility, volume prediction and continuous liquidity assessment

are important inputs to our order placement logic. Real-time and

short-term inputs are weighted more heavily than stale historical data.

Often it is possible to implement changes dynamically. The Platform

allows clients to modify execution rules, and analytics in real-time.

Recently, a sell-side Client had a large customer order to trade a

Brazilian ADR. The customer gave a new instruction after the trade had

been initiated; they wanted to track volume prole of the local stock as

opposed to the ADR volume. Within a minute of receiving the request,

the trader was able to access and switch the prole to track the local

market, without any interruption to trading.

The Workflow Challenge

Many EMS and OMS products impose a particular workow on their

customers; Tethys leverages the exibility of the Platform to adapt to our

customers optimal workows. These requirements range from complex

STP for allocations, to implementing new trading strategies or adding new

instrument types.

Time is Always at a Premium

Rapid deployment of trading solutions is critical. Architecting and

delivering a exible solution in a short timeframe is a requirement in a

rapidly changing environment. Long deployments can put the customer

in the unenviable position of having to change their requirements

every few weeks or months as the implementation is in process. Our

open API, exible architecture and experienced implementation team

allow customers to integrate quickly with other systems and achieve

production status rapidly. In 2007, one of our locally installed clients had

an electrical re in their mid-town New York Ofce. The client relocatedto DR site in upstate NY, but their DR planning failed and they were not

able to trade. We were able to bring them up on our ASP solution and

connect them to their brokers within 24 hours. The client subsequently

chose Tethys ASP as their DR solution.

Change is Guaranteed

Macro and Micro economic forces will continue to evolve the demands

on global trading service providers and market participants at ever

increasing rates. Tethys is valued in the industry for its deep understanding

of the challenges ahead and its vision for the results achievable through

superior technology and analytics.

Nitin Gambhir is t he CEO and co-founder of Tet hy s Technology . N it in has an ex t ensive back ground in quant it at ivefinance, t rading and asset management . N it in st art ed his career at J.P. M organ as an Arbit rage t rader and analy st ,

before joining Bear St earns & Co. w here he w as t he head of Equit ies Quant it at ive Arbit rage. Prior t o launching Tet hy s,

N it in w as a port folio manager at SAC Capit al Advisors and t hereaft er co-founded Alt us Asset M anagement , LLC.

N it in holds a bachelors degree from Indian Inst it ut e of Technology and a mast ers from Yale Universit y .

Tethys is a leading provider of Execution Management,

Algorithmic Trading and Transaction Cost Analysis (TCA)

solutions. Our Dynamic EMS solution, Execta, facilitates

strategy simulation, optimal trade execution, trade

opportunity detection and risk management. Execta

can be used to trade global equities, futures, options and

FX. Tethys clients include long only investment managers,

CTAs, hedge funds, and broker dealers. Exectaincludes

Tethys pre-packaged algorithms, access to third party

algorithms and also allows users to develop their own

trading strategies. Our TCA offering, TotalTCAoffers

comprehensive pre-trade, real-time and post-trade

analysis, and features unique tools which allow traders

to make better algorithmic trading decisions to reduce

costs and risk.

Tethys Technology, Inc.

17 Battery Place, 7th floor

New York, NY 10004

212 509 5600

16 Hanover Square

London, UK W1S 1HT

44 20 7016 7826

[email protected]

www.TethysTech.com


24/25



SPECIAL

REPORT

What have been some of the most significant client

requests regarding UBS Pinpoints functionality and how

did you accommodate them?

M. Blum: A major request from our clients was to give them

international trading capability so we made UBS Pinpoint global. It

meant delivering real time market data and the ability to trade using

DMA and UBS algorithms in every major market. We had to meet the

challenge of building an infrastructure that can handle any symbol,

in any market structure, in any currency, with high speed and broad

functionality. But when youre live in all these markets, you also need to

provide live support so we also created a support and service model

that follows the sun so no matter where or when a client is sending

electronic orders, they can reach a human being at UBS who can not

only provide technical support but also regional sales trading expertise

if they need it. Given UBSs reach and depth of in-market expertise

all over the world this was a challenge we could meet head-on.

What are some recent developments that you believe make

Pinpoint even more valuable to clients?

J. Schubkegel: Multi-asset trading has been driving many of our

new functionality releases this year. Pinpoint clients wanted to be able

to trade a variety of instruments in one exible interface so weve

integrated Options, Futures, Swaps, and are soon going to deliver

Foreign Exchange capabilities. We believe that our clients should be

able to use one platform to trade and hedge their long positions, foreign

currency exposure, or implement an innovative derivative strategy.

Though many of them are still primarily equities traders, it is our job to

assist them in chasing alpha wherever it may be and were seeing an

increasing emphasis on multi-asset strategies.

We feel the technology platform that weve built, combined with

UBSs dominant global trading presence, has allowed us to expand into

these other product areas, and continue to evolve our offering, at a

faster pace than would traditionally have been possible.

Beyond being responsive have you created functionality that

actually anticipates clients future needs?

J. Schubkegel: We believe the market model is moving toward full

integration with advanced analytics an EMS that is a decision-making

tool, as well as an implementation tool. In our industry, TCA has been

around for a long time, but its usefulness to the trader has sometimes

been limited mostly because it was like looking in a rear-view mirror

at best. UBS Fusion our analytics and reporting platform is real

time. So our clients can view actual post-execution analytics while the

rest of their order is still working rather than just a static post-trade

report at 4:30. We think its important to give our clients analytics when

it really matters as they are trading so they have the ability to act

upon market intelligence before their order is history. Clients who are

already using it seem to be immediately addicted suddenly their pre-

trade, in-market, and post-trade analysis is a continuously integrated

part of their workow, rather than simply presenting a pile of data that

exists in a vacuum. Thats what we mean by decision-making tool

the rear-view mirror has turned into a high-powered lens they can use to

focus on the formation, execution, adaptation, and nally the analysis

of their trading strategies.

Speaking of integrated how does Pinpoint work

with other systems?

M. Blum:From front to back, Pinpoint uses a blend of languages and

technologies including core Java, C#/.NET, C++, AJAX, Adobe Flex and

REST-based web services. Rather than being tied to one language or

technology, we utilize the language or technology platform best suited to

the problem we are trying to solve. We take the same approach when

integrating with our clients. We offer web and .NET/C# user interfaces

plus a mix of electronic interfaces that include FIX, web services, IM,

email, and proprietary protocols. Clients can use these interfaces to

access our full product suite. This means both Pinpoint and Fusion can

be smoothly integrated with third-party OMS systems and/or clients

proprietary technologies.

Why Point & Click is No Longer EnoughIn todays markets, execution management systems must anticipate the evolving needs of their buy side clients,

as well as the evolving market structure of their environment. Going beyond mere trading tools, these systems

need to be fully integrated with the overall workflow and decision-making process of the traders who use them.

But they also need to meet the challenges of a global, multi-asset marketplace.

Mike Blum, MD and head of UBS Equities Client Trading Technology, and Josh Schubkegel, Director and head

of UBS Pinpoint and UBS Fusion Technology, discuss how the global firm evolves its EMS in response to the

varied requirements of their clients.

08


25/25

What if your clients want to trade with UBS, but have another

OMS or EMS on their desk?

M. Blum:Thats easy: UBS Direct Execution has an open connectivity

policy. This is a client-centric philosophy that empowers them to access

us however they wish through any of our third-party OMS or EMS

partners, or their own proprietary trading systems. All of our Direct

Execution offerings can be delivered through Pinpoint, or la carte

through another OMS or EMS. We built Pinpoint as an advanced EMS,

and continue to evolve it so that its the best it can be, but we built it for

clients who want or need an EMS from us. Our overall goal is to help

our clients in whatever manner they trade to pursue best execution

every day.

This material has no regard to the specic investment objectives, nancial situation or particular needs of any specic

recipient and is published solely for information purposes. No representation or warranty, either express or implied isprovided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to

be a complete statement or summary of the developments referred to in this material. This material does not constitute

an offer to sell or a solicitation to offer to buy or sell any securities or investment instruments, to effect any transactions or

to conclude any legal act of any kind whatsoever. Nothing herein shall limit or restrict the particular terms of any specic

offering. No offer of any interest in any product will be made in any jurisdiction in which the offer, solicitation or sale is not

permitted, or to any person to whom it is unlawful to make such offer, solicitation or sale. Not all products and services

are available to citizens or residents of all countries. Any opinions expressed in this material are subject to change without

notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS as a result of usingdifferent assumptions and criteria. UBS is under no obligation to update or keep current the information contained

herein. Neither UBS AG nor any of its afliates, directors, employees or agents accepts any liability for any loss or damage

arising out of the use of all or any part of this material. UBS 2008. All rights reserved.

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Stamford, CT 06901

Tel: +1-203-719 1750 or +1-800-563 8018

[email protected]

www.ubs.com

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