Investment management front-office service provider Charles River Development has partnered with Broadridge to round off its middle-office services for buy-side clients.
The Charles River Investment Management Solution (IMS), one of the largest buy-side execution platforms, will integrate Broadridge’s SWIFT network for standardised messaging and settlement, completing its middle-office solution.
The alliance will also enable buy-side clients of Charles River to manage their entire trade life cycle using automated straight through processing (STP).
“We have been working with leading providers of messaging and collateral management services to complete our middle-office solution,” said Peter Lambertus, CEO, Charles River.
“The alliance with Broadridge is an important step forward to help our clients reduce settlement risk and improve middle-office productivity.”
Through the partnership, Broadridge will be able to support unlimited routing choices to send and receive messages across the SWIFT network, while Charles River can generate messages in ISO 15022/20222 formats, process SWIFT-formatted replies from custodians, and provide seamless application workflow support.
The need for standardised messaging formats has become even more important in the US following the transition to a T+2 settlement cycle, in order maintain accurate records with custodians and prime brokers.
Buy-side clients will be able to use the SWIFT messaging service to notify custodians of incoming trades and collateral transfers for margin calls, while also being able to receive notifications from custodians confirming trade settlement, as well as transactions from the custodians into the Charles River Investment Book of Record (IBOR).
Last month, State Street announced it would acquire Charles River for a massive $2.6 billion, providing a seamless front-to-back office connectivity for asset managers.