Nordea Implements SimCorp's Broker Strategy Function
Timothy Bourgaize Murray
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Nordea's Investment Management arm, which executes with an array of ten brokers, has streamlined its trading operations with the new tool, part of SimCorp's Dimension order management solution.
The functionality uses industry-standard FIXatdl files for investment strategies, rendering them directly to relevant order tickets already contained in Dimension and allowing new or updated broker-supplied algorithmic strategies to be available more quickly to buy-side traders, without any software update. It also produces a full audit trail of orders and strategy usage for later use around transaction cost analysis and related post-trade processes.
Initially back-tested with the London Stock Exchange's FIX Gateway, known as LSE Hub, the engine has now been implemented at Nordea, and includes BofA Merrill Lynch; Barclays; Deutsche Bank; Goldman Sachs; JP Morgan; Knight Capital; Morgan Stanley; Sanford Bernstein; and UBS among the group of brokers.
"Placing trades via FIX to execute broker algorithms directly from the SimCorp Dimension Order Manager blotter is quick and easy. We now have tier-one broker strategies embedded into our core straight-through processing order execution and post-trade processes, so there is no real need for other equity EMSs. Our traders can effectively execute increasing volumes this way, leaving them more time to work illiquid or special stocks," says Per Møller, global head of trading at Nordea Investment Management.
After consultation with SimCorp and certification, another broker is set to be added to the platform by the end of this quarter.