Multi Asset Class Trading Support

Close the gaps between asset class based silo systems, to launch new funds faster and control risk

There is wide agreement in the fund management industry that previously unregulated areas such as hedge funds will be regulated in future. In more traditional buy-side firms, there is increasing competitive pressure to undertake more of what were seen as sell-side functions. This is needed to support a more differentiated offer to clients.

Possibly your objective is to offer precise risk-return control with specialist funds. Or, you may wish to differentiate yourself as an alpha generator. Regardless, the priorities are probably the same. Existing risk management processes and systems will not suffice. This is true, for example, when you need to keep a much larger number of open derivatives positions.

Risk management investment therefore tends to be non-optional, either because of regulation, or general governance, or commercial imperatives. Yet postponing investments in operational efficiency can leave you struggling to put new products in the market. One answer is to adopt a cost-effective approach that can link risk management to operations. The initial investment in risk control can also deliver visible benefits for your fund managers and your clients.

Hedge funds and similar firms typically use a mixture of legacy applications. In addition, there are many in-house built reporting databases, spreadsheets and point to point interfaces.

These fragmented resources are used to manage a range of complex funds and portfolios. Spreadsheets offer initial speed and flexibility. Legacy applications are usually in place because they were best of breed or quickest to market at the time.

This generally happens each time a new asset class is needed to support the firm's offerings to its clients. Multiple challenges accumulate in this kind of environment.

How SAS Can Help