Cost reduction and control
Investment management in the UK is a £7 trillion industry, one of the largest in the world.
Shifts in buyer behavior, increased regulation, and emerging technologies call for new, more agile operating models. Today, investment management firms turn to developments in technology to introduce efficiency, cost effectiveness and compliance in to their processes.
Capula Investment Management LLP is a global fixed income specialist firm located in London with affiliated entities in Greenwich, CT; Hong Kong; Jersey and Tokyo. The firm manages absolute return, enhanced fixed income and tail risk strategies.
Established in 2005, Capula Investment Management LLP focuses on developing innovative investment strategies that exhibit low correlation to traditional equity and fixed income markets.
Capula Investment Management is a multi-billion dollar hedge fund which used computer systems to find profitable patterns within financial data and execute buy and sell orders. Their existing system did not support complex trading patterns such as short sell orders, LIMIT and TWAP, and was unable to allow cancellations, fills or terminations.
As their entire business revolved around their ability to execute these complex trades, there was an immediate need for a centralised order execution and monitoring system for their team.
WHISHWORKS proposed a unified, order routing system and dashboard to improve and enhance order flow for the business, as well a unified mechanism for implementing a SWIFT communication system.
Due to the requirements of different brokers, the FIX protocol could be used to enable communication, with XML based message transformation being used to link the protocol to a new .net based solution.
Depending upon individual broker requirements, the FIX data dictionary is customised with user-defined fields to various messaging formats. A new EXT.NET based dashboard would be installed to provide oversight of orders including a complete messaging sequence for relevant trading values.
The new build and integration of Capula’s trade order systems enable cost savings, integration with different brokers, centralised monitoring and lower risk for Capula. It saved time as well as money when Capula needed to integrate and maintain connections with new brokers, and allowed a full range of trading orders to be executed and monitored for their clients. The improved visibility improved the effectiveness of their risk analysis team, and their usage of uniform integration standards provided significant cost reductions for the business.