Neovest is a global, multi-broker electronic trading platform that specializes in Equities, futures, options, and FX markets. One integrated ecosystem, where you can trade the assets you want, when you want – all from a single screen.
June 06, 2023 by Hamlin Lovell
London (HedgeNordic) – “Neovest is a global, multi-broker execution management system that allows clients to communicate their orders to over 340 equities, futures, options and FX market brokers. Neovest consists of one integrated ecosystem that will allow you to trade the assets you want, when you want – all from a single screen,” says Sukh Bachal, Neovest’s Head of Business Development. Neovest (which simply merges the words new and invest to create a better trading experience for clients) was acquired by JP Morgan in 2005, but operates independently with broker neutrality. Neovest maintains client relationships spanning 30 years and has skilled and knowledgeable staff who provide excellent client support.
Neovest is used by hedge fund managers as well as family offices and proprietary traders — approximately 75% of Neovest’s 600 clients are fund managers, with assets under management running the gamut from USD 75 million to over USD 100 billion. In common with the hedge fund industry in general, Neovest’s client base is US centric, but is also growing globally–in particular in Europe, Asia and the Middle East. The Neovest Nordic region users include banks, asset managers, and pension funds in the region. However, given the Neovest platform is most suitable to hedge funds, Neovest are keen to expand in the Nordic region – the second largest European market for hedge funds.
Neovest’s broker FIX network allows clients the connectivity through their brokers to more than 70 equities exchanges globally, including all in the Nordic region, which includes Stockholm’s First North Growth Market. More broadly, Neovest connects to over 340 brokers globally and is open to onboarding others. “If clients want to access a particular exchange, our nimble technology allows us to very quickly add brokers who have access to the exchange,” says Vivek Nandha, a member of Neovest’s EMEA Business Development Team.
Neovest’s customer base manages strategies including long/short equity, systematic macro, managed futures and CTAs, sometimes all in one firm within a multi-strategy fund. Neovest customers generally send orders in listed equities, listed derivatives – futures and options – and some OTC FX orders to its brokers. While Neovest provides high speed data processing, it does not operate in the low latency HFT space where technology tends to be proprietary and co-located.
“We are very transparent in our capabilities to ensure we are the best fit for our clients so we can provide the best service we can. Neovest considers itself an Order and Execution Management System (OEMS), with more of an emphasis on the EMS”, explains Bachal. Neovest is mainly focused on the front office with some compliance applications: “the Neovest system is flexible enough to integrate with both third party vendor systems and clients’ proprietary systems. Neovest uses both FIX and REST APIs for integration and data feeds” explains Bachal.
Neovest works with many other providers, including some in the Nordics. Neovest specialises in advanced technology that is a critical aspect for Buy Side Front Office teams. Neovest expertise complements the capabilities of other OMS platforms including Limina and Copenhagen-headquartered FinTech Athena Systems, which is part of United FinTech, resulting in a seamlessly integrated Multi-Asset OEMS experience that covers the entire trade order lifecycle. Bachal is very open to other partnerships with established and newer systems. For instance, Neovest can integrate its services with multiple providers to assist clients with regulatory and clearing reporting.
Scaled for Client Needs!
Thus, the Neovest model is open architecture and modular. In some cases, clients simply use Neovest for trading – or even just for its user-friendly User Interface (UI). “Some firms tell us we just want your screens like a tableau to visualise data. They can plug in their own proprietary technology, bolting on their own systems above and below,” says Bachal.
Clients need not be highly technical developers, coders or programmers to configure the system. They do however need to be prepared to define their own parameters and restrictions, regarding brokers, markets, position sizes and so on, which may be needed in areas such as UCITS counterparty or diversification constraints.
“Integrating an enterprise software system does not have to take months,” says Bachal. Neovest boasts on-boarding times as short as one month, which removes what is the biggest obstacle to switching systems, according to FIX surveys.
Neovest can be used to transmit orders for high touch, voice execution, and is also a versatile platform for electronic and algorithmic trading. Neovest does not offer execution algorithms, but it can allow clients to easily send their orders to algorithms provided by banks, brokers and specialist execution brokers and algorithm experts such as quantitative brokers.
Similarly, Neovest has strategic partnerships with other specialists to populate functionality such as the short-able stocks feature. Based on client feedback, Neovest has partnered with providers to gather data on short-able stocks and importantly also where to locate security borrows: “The data generally comes from real time API feeds though data for hard to borrow stocks can take longer,” reveals Bachal.
It is becoming increasingly common for ESG critics to seek underlying information on service providers’ ESG policies. Neovest has 100% of their power needs sourced from renewable sources. “ESG is of paramount importance to Neovest and an attribute considered in our business decisions,” reveals Bachal.
Additionally, Neovest is a founding and active member of Sustainable Trading, a non-profit organisation fostering best ESG practices for financial trading. The network brings firms together to devise practical solutions to industry specific ESG issues as well as providing a mechanism for self-assessment and benchmarking. Its members include asset managers, banks and broker dealers, exchanges and trading platforms and also technology and service providers.ons and external supply chains. As an active participant in the cross-industry Sustainable Trading initiative, we hope to accelerate the pace of ESG change for the benefit of the wider trading community and influence ESG best practices for the benefit of all financial market participants.”
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