Charles River Investment Management System

Charles River Trader

Fixed Income, Fixed Income Derivatives, and Foreign Exchange Securities

Comprehensive tools to
automate and streamline global
dealing operations and workflow

Charles River Trader is the industry's premier

trading and order management system for
dealers and traders and is deployed at many of
the world's leading investment management
organisations. Designed from inception as a global
system, Charles River Trader provides full
multi-currency capabilities, supports all asset
classes, accommodates customised workflows
and trading desk setups, and allows for 24 X 7
global operations.

Fixed Income, Fixed Income Derivatives, and Foreign Exchange Dealing / Trading
Charles River Trader helps improve investment performance by streamlining and organising
the daily workflow associated with fixed income, fixed income derivatives, and foreign exchange
(FX) trading. The system supports a comprehensive set of global investment instruments, offers
highly configurable workflow capabilities, and integrates with third-party trading platforms to facilitate
electronic trading. A user-configurable blotter presents tools for real-time trading / pricing, quick
security set up, and downstream trade processing. In addition, the system provides comprehensive
analytics through an embedded FINCAD Analytics engine and by facilitating the import of
additional analytics on a beginning-of-day or as-needed basis. Investment managers using Charles
River Trader benefit from a reduction in execution errors, a comprehensive audit trail, and seamless
connectivity to trade execution and settlement systems for straight-through processing (STP).

Key Benefits
Streamline trade order management and minimise transaction costs
Reduce data entry errors
Monitor compliance and exposure across an organisation
Customise workflows and displays by user
Maintain comprehensive audit trail
Improve efficiency through electronic integration to third-party trading destinations

Fixed Income

Designed to support all security types and their associated structures, Charles River Trader
provides the tools necessary to support complex fixed income trading.
Set up multiple customised real-time blotters to meet individual dealer workflow requirements
Easily configure system to accommodate trader and manager as separate workflows or as
one combined function
Transact characteristic-based 'generic' orders utilising dealer bond inventories
Display real-time trade date and / or settlement date cash as well as cash flow forecasting
Create new securities quickly for efficient executions, i.e., without manual security data input

Bonds and Notes

Supports full range of instruments
Track and monitor bids and offers for both individual trades and lists of trades
Extensive support of sovereign and international bonds, including index-linked government bonds

Integrated with execution platforms, including Thomson TradeWeb and MarketAxess, for
seamless electronic execution

Dealers and traders can customise the Charles River Trader blotter to facilitate fast order entry and access to necessary functions. A dealer can refine virtually all
aspects of the blotter to his or her preferences, including the rapid and automatic completion of bulk activities across large groups of orders.

Money Markets
Trade on issuer availability limits ('room-in-a-name') and approved issuer lists
Comprehensive pre-trade / post-execution money market (US SEC Rule 2a7) compliance
Integrated with Thomson TradeWeb for seamless money market electronic execution
Quick security set up from pre-defined issuer-counterparty / obligor / guarantor templates and
real-time data from major data sources
Support for repos and reverse repos, including collateral management

Mortgage-Backed Securities / TBAs

Together, Charles River Manager (the portfolio management component of Charles River IMS),
and Charles River Trader offer complete automation for mortgage-backed securities (MBS)
and 'to be announced' (TBA) processing.
Quickly create initial TBA sell transactions, from both the Workbench in Charles River Manager
and the blotter in Charles River Trader, incorporating The Bond Market Association calendar
and standard product codes for creation of the TBA CUSIP and settlement date
Easily generate TBA sell and dollar roll transactions from existing inventory for one or many
accounts using The Bond Market Association calculator in Charles River Manager
Conduct pre-trade, post-execution, and end-of-day compliance on TBA trades and positions
Track original versus net open TBA par at the order level in real time, taking into account full
and partial pool assignments, pair-offs, turns, and forward roll transactions
Efficiently take delivery of TBA pools using Electronic Pool Notification (EPN) or
EaSyPool (ESP) interfaces

Fixed Income
Derivatives

Charles River Trader supports numerous derivative structures and can be used to manage
interest rate and credit risk exposure. Dealers can configure a personalised view of the order
entry window to target exact data capture requirements specific to their workflow.
Manage exposure through full range of futures, forwards, and options functionality
Execute single and cross-currency rate swap trades (e.g., asset, interest rate)
Execute single security credit swap trades (e.g., credit default, total return)
Capture standard jurisdictional ISDA Credit Default Definition Agreement terms
Option to leverage FINCAD derivative valuation modules for broad analytic functionality

In one window, Charles River Trader presents all of the trade, economic, and referential details of a swap transaction,
including the parent security details and those of the two 'legs' of the swap.

Foreign
Exchange

Consolidated FX functionality makes it easy to view unsettled trade exposure or a portfolio's

overall exposure to currency risk, and then execute appropriate strategies efficiently.
Create spot or forward orders quickly using FX dealing window
Trade currency forwards with complete workflow support, including roll requirements
Automatically net settlement currency requirements by account, currency pair, and settlement date
Auto-generate net FX spot orders to cover settlement date cash requirements
Generate currency forward orders automatically to accommodate hedging requirements

The Charles River Trader blotter offers extensive FX functionality. Dealers can automatically generate FX spot and forward transactions for trade settlement, deal a group of
trades, and dynamically trade single or multiple currency pairs. Dealers can set the spot rate, points, and deal rate, then execute as a 'done deal' or electronically via FIX.

Data &
Analytics

Charles River Trader provides comprehensive data and analytics coverage through an embedded
analytics engine and by allowing traders to import additional third-party analytics on a beginning-of-day
or intraday basis. Charles River provides interfaces for major market-leading sources and through
tight integration, traders can feel confident that their data, trades, and analytics are always
synchronised. It is also easy to trade securities that are not already in the Security Master by
simply importing referential and associated analytics data from a variety of market-leading sources on
a single security basis.

Reference Data
Charles River Trader synchronises with numerous reference data sources to ensure traders always
possess correct referential data on a security prior to conducting a trade. Set the synchronisation to
occur on a beginning-of-day basis, and / or refresh data intraday as needed.

Analytics
Leverage the extensive capabilities of the embedded FINCAD Analytics engine across all
instrument types. FINCAD supports traditional instruments and also provides broad derivatives
coverage, including structured options, rate, and credit derivatives. Traders can also import
their preferred analytics from best-of-breed sources such as The Yield Book.
Produce cash flows for fixed income and derivative instruments
Calculate risk measures (e.g., delta, gamma, theta, rho, etc.) and swap analytics
Generate forward and discount curves for valuations

Dealers can source live curve data from a set of market providers. In this example, the analytic engine calculates nominal cash
flows of the interest rate swap legs as well as the present value of these cash flows. For multiple currency swaps, two distinct
currency curves can be sourced to value the associated cash flows. Users can also display graphical presentation of the cash flows.

FIX

Charles River is an industry leader in advancing electronic connectivity standards and offers
embedded electronic FIX (Financial Information eXchange) trading support across all security
types, including fixed income, currencies, and derivatives. Charles River Trader includes
the market-leading CameronFIX engine, integrated interfaces to numerous electronic communication
network (ECN) and alternative trading system (ATS) trading destinations through the Charles
River Network, and supports a wide range of FIX message types, including allocation messages.
In addition, Charles River IMS is FIX-certified with FIX Protocol Limited (FPL).
Send / receive FIX orders, executions, and allocations for all security types
Send FIX orders to numerous fixed income and FX ECNs, ATSs, and broker destinations
Execute single and list orders electronically
Route FIX orders automatically using a customisable rules engine
Send orders directly to counterparties to receive real-time executions
Conduct solicited and unsolicited executions

Order
Management

Charles River Trader automates repetitive trader tasks to increase productivity and streamline
order workflow. For example, a dealer can process an order by simply highlighting the order
and clicking on designated blotter icons to:
Merge, split, cancel, replace, clone, and more
Automatically generate FX spot and forward transactions for trade settlement and hedging
Send orders electronically and automatically receive back multiple-fill executions
View fills and average price and track leaves

Charles River Trader's distributed architecture allows for the following high-speed automatic
trade processing tasks to occur in the background:
Process unsolicited fills and drop copy orders
Import trades or executions from spreadsheets or files
Automatically merge orders when traders take ownership
Compute and display available trade date cash in the blotter
Determine default settlement dates based on exchanges and security types
Calculate execution fees and settlement amounts in multiple currencies using available FX rates

Workflow
Configuration

Charles River Trader supports all securities, workflows, and user preferences through extensive
user-defined customisation options, quick navigation, and flexible system administration facilities.
Create a personal trading environment by setting up multiple, customised trade blotters,
e.g., display preferred columns, sort or group by preference, set up personal icons
Define custom analytics by trader
Configure a personal Workflow Monitor to track or query on any system event or database item
and set up user-defined alerts
Customise any of the 90 real-time reports and graphs, each with dynamic drill-down capabilities
Control allocation methods, order duration, commission type, tolerance values, and other
parameters by setting up default order processing and default order values

Post-Trade
Processing

Through tight integration with Charles River Post-Trade, the centralised trade processing
component of Charles River IMS, users can take advantage of extensive allocation functionality
and settlement connectivity to increase trade processing efficiencies.
Allocate partially-filled order(s) using pro-rata, random, sequential, manual, and level-off methods
Route completed trades / allocations in real time to accounting, settlement venues, and custodians
Conduct omnibus account trading
Set up and automatically apply matching rules to trades
Automatically communicate broker and custodian settlement instructions
Send FIX allocation confirmation messages to brokers
Send trade data to internal or external systems via rules-based Trade Gateway interface
Use rules-based Trade Gateway to communicate to Omgeo Central Trade ManagerSM (Omgeo
CTM), Omgeo OASYS GlobalSM, or send ISO 15022 messages (optional)
Send trade tickets, bank authorisation letters, electronic faxes, and e-mails directly to
counterparties via AutoFax, e-mail, ASCII files, or by printing

Compliance

The Charles River Trader blotter includes comprehensive pre-trade and post-execution
compliance monitoring through tight integration with Charles River Compliance, the compliance
component of Charles River IMS. Use of its capabilities saves traders time, reduces exposure,
and lowers overall trading costs. Dealers can quickly run fast, automated compliance checks prior
to execution directly from the trading blotter and use the system to monitor holdings. In the
event of a compliance violation alert, users can drill down to instantly view the account
rules, trade information, security details, positions, and trades contributing to the compliance
calculation. Dealers can then acknowledge the alert or warning, notify others upon correction of
the problem, request higher-level approval, or override the alert / warning as appropriate. The
system also facilitates post-execution testing (immediately after execution but before
allocations are final) to verify compliance.

Charles River Trader is part of the award-winning Charles River Investment Management
System (Charles River IMS) software suite, which includes Charles River Manager for portfolio
management, Charles River Compliance for pre-trade and end-of-day compliance, and Charles
River Post-Trade for centralised trade processing. The system incorporates real-time FIXbased electronic trading via the Charles River Network, a reliable, secure, private financial
network. The comprehensive front- and middle-office solution helps investment managers
increase efficiencies, mitigate risk, and improve performance through streamlined trade
execution and processing.
Charles River offers a wide range of services to supplement its software, including
Professional Services, Managed Services (remote and hosted application management), and
FIX Network Services.

Charles River Development

Charles River Development, founded in 1984 and privately held, is a market-leading
provider of software, services, and technology solutions to the global investment
management community. Serving the institutional asset management, mutual fund,
banking, pension, hedge fund, wealth management, and insurance industries,
Charles River combines state-of-the-art and industry-standard technologies to deliver
applications that are open, flexible, scalable, rich in functionality, and easy to use.
The firm complements its award-winning products with comprehensive professional
services, which it delivers through strategic office locations and
partnerships around the globe.

Boston
+ 1 781 238 0099 telephone
+ 1 781 238 0088 fax
London
+ 44 (0)20 7634 3300 telephone
+ 44 (0)20 7634 3301 fax
Melbourne
+ 61 3 9670 5455 telephone
+ 61 3 9670 5411 fax
Paris
+ 33 (0) 1 53 43 90 48 telephone
+ 33 (0) 1 53 43 90 68 fax
Singapore
+ 65 6435 8011 telephone
+ 65 6557 0572 fax
sales@crd.com
www.crd.com
All trademarks are the property of their owners.