Issue 17 Autumn 2007 UPDATESThe newsletter for enterprise professionals Click on items below to read Introduction Fund administration 2 The future of Updates 11 Daily data 2 Discovering the Power of & Risk Trading systems 12 Risk goes global 3 Take control 13 Introducing Mr Risk 3 A joint effort 13 Bridging the gap – while minding your step 4 Here is the news 13 JRisk On Demand 4 Machines and humans 14 Kondor+ Structured Products 5 The Power of 14 6 Case study: Regulatory compliance Reuters Tick Capture Engine 15 Dealing with the unknown 7 Comply with confidence 7 The need for speed 8 Don’t miss a tick EDM 16 More intelligent data Back office 9 Take action Hints and tips 10 MiFID ready? 17 Transparent things 1 | > Register Back Issues COL3098 Reuters Update Issue17.i1 1 17/10/07 15:52:45 Introduction Take me to > Introduction | Trading systems | Back office | Fund administration | Risk | Regulatory compliance | EDM | Hints and tips 3. Fund admin & valuation The future of Updates Working to create perfect record keeping in an Discovering the Power of & Welcome to Updates: our seventeenth and final increasingly complex environment. Reuters evaluated Too often business automation means compromise: edition as a PDF. Next quarter we will be relaunching pricing is bringing transparency to fixed income pricing. STP integration or simplification of systems and Updates as an interactive enterprise community processes; achieving compliance or creating area on the Reuters website. There’ll be news and 4. Risk management competitive advantage. interviews, data and product updates, discussion Simplifying the front-to-back risk management forums, events and web casts, training and RSS for the buy-side and sell-side. 700 risk specialists in At Sibos 07 in Boston earlier this month, Reuters newsfeeds. The aim is to bring together all of 83 countries help you manage risk in an automated, showcased a powerful new approach to business. Reuters support, advice and information for cross asset environment. We called it The Power of &. Answering mutually enterprise market data and IT professionals. exclusive needs – without compromise: ‘The Power 5. Regulation & compliance of &’ delivers the future of business automation. Starting today, we are also reorganising Updates, Using the power of cleansed, validated, auditable to reflect what’s most important to you – and how and linkable Reuters data to reduce risk and meet Delegates explored three solution zones: Simplify Reuters can help you address five key issues: regulatory requirements including Reg NMS and MiFID. & Integrate, covering trade & risk management, Compete & Comply featuring enterprise risk 1. Trading systems I hope you find Updates useful. We’ll be in touch by management and Control & Empower – covering The lowest latency direct and consolidated data; the close of the year with news of the new Enterprise data management. It wasn’t all work: the Reuters automated trading platforms to handle the highest community site. Your ideas for what we should include party at the John F Kennedy Library was one of the data volumes and a robust technology backbone to on the pages would be extremely useful. Please send social highlights of the week. help you compete and manage cost. your suggestions to me at the email address below. To find out more about The Power of &, see our . Back office Tom Ablewhite, Digital Marketing Manager SIBOS site http://about.reuters.com/sibos/ • Seamless trade management, reconciliation and [email protected] settlement that can deliver STP, reduce failed trades and lower your costs. | < > Updates Issue 17 Autumn 2007 COL3098 Reuters Update Issue17.i2 2 17/10/07 15:52:47 Trading systems Take me to > Introduction | Trading systems | Back office | Fund administration | Risk | Regulatory compliance | EDM | Hints and tips RMDS Internet Finance Platform gives internet Take control A joint effort access to all the data on RMDS. It is designed to Reuters Open DACS manages fee liable data How Reuters and IBM are collaborating to run on IBM WebSphere servers. Financial businesses today depend on data more than make life easier This new development makes Reuters systems more ever before, much of it consumed by new applications Reuters Market Data System (RMDS) now integrates open than ever. You can now build applications using or users. Data consumption patterns change rapidly with applications using IBM WebSphere software. IBM messaging software to access content from as new applications come on stream: it’s easier The integration project brings together the most RMDS and to distribute across the enterprise. than ever before to redistribute data. Exchanges powerful collection of streaming market data with meanwhile are providing increasingly complex existing databases, enabling market data professionals Read more about eDist or speak to your Reuters pricing and being active auditing clients. to manage massive data volumes better and improve representative. trading. Three new products from Reuters, extending All this creates a real headache for data managers, the reach of RMDS, are making the integration possible: who need accurate control and reporting of data consumption to multiple vendors. Reuters Open RMDS Multicast Distributor released later this year, DACS is the ready-made, enterprise-wide solution. is powered by IBM’s new Reliable Multicast Messaging An extension to the Reuters established DACS technology that enables ultra-fast distribution of system, Open DACS can manage all data and any content from RMDS to client applications. applications (not just those provided by Reuters). One system controls and reports on the data use RMDS Enterprise Distributor (eDist) is a Java of any application, anywhere in the enterprise. Messaging Service gateway that connects RMDS to IBM WebSphere Software. It allows applications written Open DACS was released by Reuters in mid 2006 in WebSphere to access the 80 plus data sources from and is in use with many global organisations. It is vendors on RMDS – as well as internally published data. recognised as a data entitlement solution by major It can also distribute content over RMDS for consumption exchanges like New York Stock Exchange, London by other applications. Stock Exchange and Deutsche Boerse. For more information about Open DACS visit the Professional Products page. 3 | < > Updates Issue 17 Autumn 2007 COL3098 Reuters Update Issue17.i3 3 17/10/07 15:52:48 Trading systems Take me to > Introduction | Trading systems | Back office | Fund administration | Risk | Regulatory compliance | EDM | Hints and tips Here is the news Machines and humans Automated news sentiment analysis “Imagine a machine scanning hundreds of stories on comes to Reuters companies’ results, measuring the sentiment around Everybody knows the trading cycle is increasingly them and incorporating that into algorithmic trading automated, with computers taking on tasks that used strategies,” says Peter Moss, Reuters Global Head of to be done by people. With the latest release from Enterprise Solutions, “This powerful capability can have Reuters NewsScope, not only can machines read the a meaningful impact on a client’s portfolio performance.” news, they can now analyse the author’s sentiment and spot trading opportunities. With its rich array of metadata across 28 fields, the Reuters NewsScope Sentiment Engine can serve even Powered by a leading linguistics application the most demanding of quantitative analysts and the designed by Infonic plc, Reuters NewsScope most sophisticated algo engines. But it’s not just for Sentiment Engine “reads” news articles in real-time algorithmic trading. Tracking the news sentiment on and scores them for positive, neutral, or negative a company over time can give an analyst, portfolio sentiment. These scores may then be added manager, trader, or risk officer a more complete together to calculate prevailing sentiment for picture of the news and provide meaningful insight a company, a sector or even an entire market. into a human’s trading decision. Your Reuters representative can tell you more. 4 | < > Updates Issue 17 Autumn 2007 COL3098 Reuters Update Issue17.i4 4 17/10/07 15:52:48 Trading systems Take me to > Introduction | Trading systems | Back office | Fund administration | Risk | Regulatory compliance | EDM | Hints and tips all regions, as well as adding asset classes, as we look The Power of 14 to complement our existing consolidated feed offerings More venues coming to Reuters Data to provide our customers with best in class content solutions to meet their specific needs. Feed Direct There are fourteen new venues available on Reuters For its fully managed service, as well as managing daily Data Feed Direct (RDF-Direct), the industry’s only reference data changes and calculating value-added globally supported and fully managed direct feed fields, Reuters maintains and supports all software service. For Asia you can now receive level 1 & 2 and hardware and proactively manages capacity to coverage direct from the Korean Stock Exchange, accommodate growing exchange volumes. This level Tokyo Stock Exchange Flex, Osaka Securities of service allows client IT and Market Data teams to Exchange, Jasdaq Securities Exchange focus on their core business. Level and Reuters Market Data System (RMDS). Content from Reuters Data Feed Direct integrates In Europe we have added the following feeds to seamlessly with other Reuters Data Feeds and the our existing offering: Euronext Cash, Euronext Liffe, Reuters Market Data System, enabling