Business Context and Implementation Scope

Following the strategic planning phase outlined in Part 1, the implementation team focused on creating robust straight-through processing (STP) workflows for four distinct investment strategies:

  • Deep Value
  • Emerging Markets
  • Dividend Income
  • Long/Short Equity

Each strategy required unique considerations for:

  • Order generation and execution
  • Compliance rule implementation
  • Settlement processing
  • Position reconciliation
  • Performance reporting

Bloomberg Integration Framework

Core Team Structure

The implementation involved close collaboration with Bloomberg’s product and engineering teams:

  • 8 AIM OMS specialists
  • 6 EMSX trading system experts
  • 4 CMSX compliance system engineers
  • 2 integration consultants
  • Multiple business analysts and developers within Client’s existing tech teams

AIM OMS Implementation

The OMS implementation focused on strategy-specific requirements:

  1. Portfolio Management Integration
    • Real-time position monitoring
    • Cash management workflows
    • Corporate action processing
    • Strategy-specific analytics
    • Performance attribution
  2. Order Generation
    • Portfolio rebalancing tools
    • Cash deployment automation
    • Strategy-specific order parameters
    • Default broker algorithms
    • Trading restrictions handling

EMSX Trading Workflows

Implemented sophisticated execution capabilities:

  1. High-Touch Trading
    • Block trade workflows
    • Broker interaction tools
    • IOI management
    • RFQ processing
  2. Low-Touch Execution
    • Algorithm selection framework
    • Smart order routing
    • Dark pool access
  3. Broker Connectivity
    • FIX network configuration
    • Broker algorithm integration
    • Commission management
    • Trade allocation rules
    • Broker restriction handling

CMSX Compliance Implementation

Developed comprehensive compliance frameworks for multiple regulatory regimes:

  1. 1940 Act Requirements
    • Issuer concentration limits
    • Industry exposure monitoring
    • Leverage restrictions
    • Short sale regulations
    • Affiliated 17a7 transaction controls
  2. UCITS Regulations
    • Eligible asset verification
    • Diversification requirements
    • Global exposure calculations
    • Counterparty risk monitoring
    • Liquidity management
  3. Offshore Vehicle Rules
    • Investment restriction monitoring
    • Exposure calculations
    • Cross-trade controls
    • Fair value pricing rules
    • Related party transaction monitoring

Post-Trade Processing Integration

CTM Integration

Implemented comprehensive trade matching workflows:

  1. Trade Enrichment
    • Standard settlement instructions
    • Account allocation rules
    • Commission calculations
    • Broker confirmation matching
  2. Exception Management
    • Mismatch identification
    • Resolution workflows
    • Escalation procedures
    • Audit trail maintenance
    • Status monitoring

State Street Custodian Integration

Established robust trade booking processes:

  1. Trade Communication
    • SWIFT message generation
    • Format translation
    • Acknowledgment processing
    • Settlement instruction handling including standing instructions for FX trades
    • Amendment/Cancellation workflows
  2. Position Reconciliation
    • Daily position comparison
    • Cash balance verification
    • Corporate action processing
    • Break resolution

Operational Workflow Design

Middle Office Procedures

  1. Trade Processing
    • Allocation workflow
    • Broker confirmation
    • Settlement instruction generation
    • Amendment handling
    • Cancellation processing
  2. Reconciliation
    • Position reconciliation
    • Cash balance verification
    • Corporate action processing
    • Break resolution
    • Exception handling

Investment Accounting Integration

  1. Trade Booking
    • Account mapping
    • Security master maintenance
    • Currency processing
    • Tax lot assignment
    • Cost basis tracking
  2. Portfolio Valuation
    • Pricing verification
    • FX rate application
    • Corporate action impact
    • Performance calculation
    • NAV generation

Performance Metrics

The implementation achieved:

  • 99.9% STP rate for standard trades
  • 100% compliance rule coverage
  • Zero major compliance breaches
  • 95% reduction in manual interventions

This comprehensive STP implementation created a robust foundation for the firm’s equity trading operations. Part 3 of this series will explore the system integration aspects and platform architecture considerations.