Waters Buy-Side Technology: Latest Paladyne Release Includes Shorting Module
Author: Stewart Eisenhart
The newest version of hedge fund technology developer Paladyne Systems’ order and portfolio management product, Paladyne Portfolio Master Version 7.0, features a capability enabling users to locate short-trading opportunities in real time.
Paladyne developed the module to help hedge funds address new regulatory reporting requirements around short trading, and to provide more automation and transparency around these activities.
The new tool, Short Availability Manager, connects Paladyne clients to prime brokers to facilitate real-time identification of short opportunities; the module can also track borrowing fees and rebates as well as transparently manage borrowing costs, according to the vendor. Specifically, managers can use Short Availability Manager to locate stocks for borrowing, simultaneously compare rates from multiple prime brokers, and to monitor changes in pricing.
Using the module, managers can also track their short positions for their own internal requirements such as risk management, valuation, accounting and regulatory compliance.
Other enhancements to Paladyne Portfolio Master Version 7.0 include a bigger compliance rules engine to support UCITS funds, real-time portfolio management and trading dashboards, and improved workflows to support repos and contracts for differences (CFDs). The platform also offers tighter integration with Bloomberg SAPI for dynamic field mapping, SunGard Monis for real-time convertible bond valuations, and RiskMetrics for multi-asset portfolio risk reporting.
Bottom line: Providing hedge funds with an automated and transparent method for tracking their short activities should prove useful as these trading strategies attract more regulatory scrutiny.