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Project Enhance, Prime Broker Globalization, and Development of Equity Analytics and Systematic Trading (EAST) Are Key Initiatives for Bear Stearns & Co.

Bear Stearns CIO and Director of E-Commerce Peter D. Cherasia initiates Project Enhance to position subsidiary EMC Mortgage Corp. for growth, extends Prime Broker Globalization project to streamline processes, and continues the development of Equity Analytics and Systematic Trading (EAST) to further the company's trading position.

Bear Stearns
Peter D. Cherasia
CIO and Director of E-Commerce

Bear Stearns & Co.
383 Madison Avenue
New York, NY 10179


Market capitalization of $58.4 billion; total assets of $300 billion as of February 2006.


Bear Stearns, head of financial analytics and structured transactions group; Digital Equipment Corp., senior software specialist; Quotron Systems, engineer.


B.S. in electrical engineering from Rutgers University.


Alan Greenberg practicing his golf swing on the trading floor during the stock market meltdown in 1987. That was a real opportunity to see somebody demonstrate grace under fire. His actions at that point served to calm so many people and keep their heads in the game.

Top 3 Current Projects

Project Enhance


Project Enhance is a multiyear initiative to position our Dallas-based mortgage subsidiary, EMC Mortgage Corp., for at least 100 percent growth and create efficiencies and economies of scale. The first phase will focus on creating a platform that can handle growth. Phase 2 will see a streamlining of all the workflow associated with origination, processing and servicing of mortgage-related products, along with a complete overhaul of client access into our mortgage business, making it easier to manage their loans and access other financial products.

Prime Broker Globalization


This is an extension of the BearPrime revamp project that began in 2004 and will streamline all the processes behind it. We will move to exception-only processing, make it easier for clients to interact with the platform, provide executions globally and report back in real time on those transactions, give high-quality performance attribution and measurement capability in real time, and allow clients to do online cancels and corrects. The focus is on providing the infrastructure and facilities to support the hedge fund community in any market.

Continuing Development of Equity Analytics and Systematic Trading (EAST)


To be a leader in the next generation of securities trading on Wall Street, we are continuing to evolve the algorithms for the markets in which we interact, and the risk and quantitative models we supply to clients. The market is fragmenting, with multiple pockets of transparent and dark liquidity, so you need high-performance, low-latency technology that will take you to the various pools of liquidity. And the algorithms, through the smart order router facility, can do that better than a human.

2007 Initiatives

Energy Trading Platform

We will be building a platform to support the rapid expansion of our energy-related trading businesses -- including modeling of exotic energy products and risk analysis of the nonlinear aspects of some of those products -- and then assuring the energy trading platforms will seamlessly fit into our core infrastructure for risk management, operations and accounting. The goal is to duplicate our successes in implementing flexible trading systems that adapt to changes in the market, incorporating new products and changes in workflow and advances in valuation techniques.


IT Budget:


Percent of IT Projects Outsourced:

Today, we've got much more than a third of our maintenance outsourced, which allows our best people to focus on leveraging their business knowledge. I view outsourcing of project work as a variable staffing model that effectively allows me to employ new staff for development projects. I like to keep the variable workforce at 5 percent to 10 percent of overall project-related staff.

Key Technology Partners:

We partner with many companies. It is our practice to build long-term relationships.

Success Metrics:

There has to be a solid business case for each new technology project leading to revenue and/or cost savings. Once approved, we apply our seven-step system development life cycle (SDLC) process that tracks all the usual components (such as adherence to schedules and budgets), monitors risk levels and makes sure we communicate with the businesses so they can grade the project's success after delivery. We also have added a couple of rapid prototyping pieces that allow us to work alongside traders on the desk to turn out prototypes quickly.

Vision: The Next Big Thing

I want to continue to blur the lines between what is business and what is technology. In many areas where we work, technology is the business, so we want to work as a partner with the business units to design and implement applications that creatively leverage unique business concepts.

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