02.03.2012
By Terry Flanagan

Linedata Infiltrates Canada

Canadian hedge fund chooses Linedata for its front-to-back enterprise solutions.

Global hedge fund solutions provider, Linedata has won business from Canadian-based hedge fund, Radiant Investment Management. The firm is headquartered in Toronto has both on-shore and off-shore funds that employ primarily event-driven strategies.

The firm announced last week that it will begin using Linedata’s flagship hedge fund management solution, Beauchamp, an integrated front-to-back office product that supports multi-currency, multi-asset class, multi-strategy investing and trading.

“Among, the systems we reviewed, Beauchamp best handles the complex instrument types we trade,” said Radiant Chief Investment and Chief Compliance Officer, Norm Kumar. In executing strategies, Radiant trades equities, warrants, options, debt, arbitrage and corporate actions.

“A key factor was the ability to accurately shadow our NAV (net asset value), which it does to the penny,” he continued. “Finally, another reason was the fact that we have the system hosted by Linedata means we do not need to invest in the overhead of an IT department to run it.”

Everyone likes to save. By far, cost efficiency is of top concern for hedge funds when it comes to selecting a solutions provider.

Linedata is slowly increasing its penetration in the Canadian market. The firm has long touted a seamless, efficient implementation process, but also its independence as third party provider—a key theme for today’s hedge fund regulators.

“We can deliver a fully integrated front-to-back offering, and you get a seamless solution that better enables hedge funds to meet the ever-changing requirements of the regulators and the increasing demands of investors,” said Jack Wiener, executive vice president of Linedata North America.

“Financial technology adoption has been slower in Canada. Nonetheless, every firm today is challenged with finding ways to improve operational efficiency, reduce risk, manage costs, and enhance client service all in a market where the bottom line is paramount,” he continued, noting that trading and investing in Canada means dealing with a large majority of bundled transactions, often with time restrictions.

“In Canada, a key requirement is for systems to be capable of unbundling transactions and reflecting the changing rates of discounts over time,” Wiener told Markets Media, noting that Beauchamp’s competitiveness in this area.

While Beauchamp is a platform for trading, order management, portfolio management, compliance and reporting, another important business line for Linedata is its ability to independently offer connectivity to liquidity providers, prime brokers, administrators and others market players.

“The complexity (of Beauchamp) comes into play with modeling deals that often incorporate many of asset classes in a single transaction,” Wiener said.

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