Cost reduction is not incompatible with improved business agility!
For the Buy Side
The investment management industry is an important consumer of market data. Whatever their investment strategies, asset managers, pension funds, hedge funds and other participants in this market share a common set of concerns.
- Innovation: Capacity to identify potential growth area and to develop and sell quickly the products that will create this value
- Time-to-Market: Business strategy should not suffer from any technical constraint. When a new product is to be launched or a new market to be addressed, time is money.
Research for Performance:
- Fund Managers require easy access to all the financial data to take their decisions in the best way and on the correct basis
- The pricing of the financial instruments, and especially OTC products, must be as accurate as possibly feasible, and can not suffer any data quality errors.
Internal Cost Optimization:
- Processes must be optimized and at the same time flexible enough for improvement
- Operational risks must be followed up, sources of errors should be clearly identified and KPI metrics must be used
- Manual keying of data rather than automatic import often represents an increased in cost expenditures in term of time lost and of human resources involved, especially for the back office.
IT Efficiency & STP:
- The IT platform is here to serve the business. Flexibility is a must for surviving the organizational changes and any market turbulences.
- When large amounts of money are involved, the IT systems must be never suffer instability
- IT represents an important budget for the buy side industry, and therefore every gain of efficiency and architecture optimization that would lead to cost optimization is essential.
Respect of Compliance:
- Fund managers are legally and commercially committed to respect a set of fixed compliance rules. They cannot take any risks and must have proper systems to follow up these rules. These systems must be secured and auditable.
Market Risk Management:
- Due to the amounts managed, the most subtle mistake in appreciating the risk that a security or counterparty represents can have a nine figure impact.
- The current high volatility of the markets requires all investment companies to have a closer, faster and more automated follow up process of their risk exposure.