Du Pont Plans Digital Data System For Traders, Managers, Analysts

Du Pont Pension Fund Investment (PFI) plans to install a digital data distribution system at its Wilmington, Del., headquarters. The 18-position system will supplement a Micrognosis Inc. video-switch currently serving a similiar number of users.

PFI is now evaluating responses to a request for proposal issued to nine data distribution system vendors last month. PFI will select a vendor in early November and plans to go live by Dec. 14.

The RFP was sent to ACT Financial Systems Inc., Digital Equipment Corp., FD Consulting Inc., Kapiti PLC, Micrognosis, Reuters Holdings PLC and Teknekron Software Systems Inc. All but DEC and FD responded, says Rick Zeimann, senior investment management systems specialist at PFI.

Zeimann says PFI, which manages $14 billion in pension assets for chemical manufacturer Du Pont, issued the RFP to such a large number of vendors "to test the waters to see who is a good fit." Given the firm's requirements, "it makes perfect sense that not everybody chose to bid," he says.

The new system will supplement the Micrognosis video-switch, which allows portfolio managers and traders to view four monitors simultaneously.

There are 24 market data positions at PFI. Portfolio managers, traders and analysts have a variety of standalone terminals displaying real-time information.

PFI uses market data and news services from Quotron Systems Inc., Reuters, Telerate, Bridge Information Systems Inc., Knight-Ridder Inc.'s Financial News, Shark Information Services Corp., Bloomberg L.P., Thomson Financial Services Inc.'s AutEx and First Call, CQG Inc., Datastream International Ltd., and the London Stock Exchange's Topic.

Not all services are available at every position. "One of the things we hope to accomplish with the new data distribution platform is to slowly reduce the redundancy between services," says Zeimann.

PFI's aim is to insure that the market data services it receives can be integrated in real time into the firm's portfolio management, research and analytics systems.

"Integration is the hot button," says Robert Blatt, supervisor of investment management systems at PFI. "We're trying to find a solution with the right blend of functionality, reliability, flexibility and economy."

To assist it in preparing the RFP, PFI hired consultant Walsh-Lowe & Associates. "Although we know our environment, we felt that it was such a niche market that we brought Walsh-Lowe on board to give us a hand," says Blatt. The consulting firm will also help PFI in the process of selecting a vendor.

Although PFI will use personal computers running Microsoft Corp. Windows 3.1 to deliver data to end users, the firm has not yet decided which hardware to use as servers. "We're open to workstations, PCs or [DEC] VAX VMS servers," says Zeimann.

PFI currently has about 100 386-based PCs running Windows applications over an Ethernet LAN. These PCs are used by accounting and administrative staff, as well as by the 24 traders, managers and analysts.

The firm uses Pathworks for DOS to connect to core applications running on a DEC VAX cluster. This architecture integrates Securities Trading, Analytics, Recordkeeping and Research, and is known by its acronym, STARR. The network that ties the systems together is known as STARRnet.

At the same time it implemented STARR about 18 months ago, PFI installed a multicurrency, real-time position-keeping system purchased from Computer Aided Decisions Inc. of Boston. Such a system is a must for PFI, which has 20 percent of its portfolio in foreign equities and bonds.

Known as the Global Portfolio Valuation System (GPVS), the package runs on a VAX cluster in a data center 20 miles from PFI's Wilmington headquarters. Another application running on the VAX cluster is Statistical Analysis Systems' (SAS) software package for back-testing.

In addition to GPVS and SAS, a relational database containing portfolio information is housed at the data center and runs on the VAX cluster. A combination of DECnet, Pathworks and Windows allows traders, managers and analysts to access applications as well as the relational database, which PFI has dubbed the "data warehouse." STARRnet is linked to the VAX clusters in the data center via Du Pont's fiber optic backbone network. DECnet handles wide area communications.

Pioneer Software Inc.'s Q&E, which is bundled with Microsoft's Excel spreadsheet, is one of the tools that permits end users to develop their own queries for analysis and reporting. "They can slice and dice data any way they want," says Zeimann.

Currently, analysts update spreadsheets in real time using Reuter Terminals. Once the new digital data platform is in place, users will be able to plug real-time data into Microsoft Excel spreadsheets and other applications running on STARRnet.

The new digital data distribution platform will be incorporated into STARRnet, which Blatt describes as a "combination of a lot of third-party products to integrate hardware systems." PFI views technology as a commodities market, he says, and as such, buys its hardware and software off the shelf. "We are not going to be locked into any vendor's proprietary architecture," Blatt says.

To support its systematic, value-based investing philosophy, PFI has identified a strategy to invest heavily in technology. PFI segments the management of its technology into four areas--investment management systems, market data services, network services and portfolio systems. These four groups are responsible for supporting core applications and technologies.