Global Investment Systems announced Friday its newly launched compliance software is leading the charge in putting the proper controls in place to combat market timing and other trading abuses.
The Hackensack, N.J.-based software developer said its Mshare® product, introduced in June 2003, added a redemption fee module to its existing transfer agency and recordkeeping system. The module allows user-definable redemption fees based on the duration of ownership of the shares being redeemed, which the company believes will effectively discourage rapid-fire trading of mutual fund shares.
Mshare also enables fund shops to identify possible market timers by warning the user that an investor is repurchasing shares he or she has previously sold within a designated time frame. At the time the shares are purchased, the system will automatically screen for and display all previously entered redemption transactions enabling the user to identify red flags.
GIS currently has 145 installations of its products throughout the world, servicing more than 3,500 mutual funds, hedge funds and portfolio accounts with more than $300 billion in assets under management.