Managed accounts are the new reality for alternative investment managers who want large allocations. Managed accounts mean block trades, fill price allocation, multiple clearing relationships, give-up reporting, additional counter-parties, and additional complications trading a fund does not have.
The ironic thing about a CTA is they are selling one of the most basic of commodities; Risk Adjusted Returns. There is no difference between a risk adjusted return of 10% from advisor A and a risk adjusted return of 10% from advisor B. What differentiates advisors are the intangibles such as how clients are handled when the returns are not there.
We surveyed our customers to identify the reasons why firms use TheBooks as the core of their operating software environment. Find out what they had to say.
Unlike a traditional accounting system, TheBooks® has been designed with the trader in mind. Rather than being built independent of trading, TheBooks integrates accounting and performance reporting into the trading process.
TheBooks includes the following components
Manages the trading and counterparty activity notification process. It handles all the automation and communication associated with creating, placing, filling, and reporting trades and integrates with all of the popular execution platforms.
Reconciles your accounts with your clearing brokers. It quickly and automatically reconciles trade confirmations, open positions, trading commissions, and cash balances. It tracks open trade breaks and prepares and sends break sheets to your brokers.
Performs real-time trade matching, ensuring that you always know your positions. It can produce roll trades, exit trades, and reversals. Trades for account opens, closes, additions, and redemptions can also be produced. If you trade multiple systems, it will maintain positions by system as well.
A multi-currency accounting engine tailored to the accounting and reporting requirements of the advisor with managed accounts. It handles commission and fee accruals and charging. Management fees, incentive fees, and interest accruals are formula-based.
Povides real-time, intra-day performance and risk reporting, valued on the tick, historic reporting as well as standard performance tables. All reports are delivered via a web-browser interface or can be automatically emailed.
Value at Risk, Scenario analysis, and exposure with graphical and numeric displays along with the ability to transfer the data to products like Excel for furthur anaysis. Both the current portfolio and one with hypothetical modifications can be evaluated.
Provides a repository of market price data for research and order generation purposes. It integrates data from a wide range of vendors into a single, consistent format. Combined with flexible continuous contract building and an automatic daily data downloader, the Data Manager is the tool for the systematic trader.
Extends the Trading Desk concept in TheBooks and allows the routing of trades directly to exchanges for execution or trading platforms for further management. It also provides FIX-drop trade capture capability.
Provides interfaces for obtaining both real-time as well as end-of-day prices from a wide variety of data vendors. Real-time prices can be obtained from DTN and CQG. End of day prices can be obtained from DTN, CQG, CSI, Yahoo, any Excel spreadsheet, text files, and your brokerage statements.