Technology Round Table: challenges ahead for the future
Margie Lindsay
Published 12/20/2009
The issues covered in the report include:
- Investor Concerns: Investors are now demanding greater operational risk controls and technology can provide the infrastructure needed to allay concerns.
- Outsourcing vs. Bespoke: Funds need to consider carefully which options are best for them and are cost effective: off the shelf, bespoke or outsourced. Experts advise a mixture of all.
- Operational Risk: The financial crisis has given hedge funds a wake-up call, forcing them to examine their operational risk systems and ensure they have adequate controls in place.
- Multi-prime Challenges: A major challenge that multi-prime funds face is the lack of a single trade reporting standard. Other issues also confront funds looking to grow.
* These are the questions discussed. To read the full report, download the PDF.
Investor concerns drive technology choices of funds
How important is the software/technology infrastructure in establishing investor confidence in a hedge fund/fund of hedge fund? How can it help provide increased transparency and reporting to investors as well as regulators?
Outsourcing could be the answer
How can hedge funds and funds of hedge funds balance cost reduction and improving client service when it comes to middle- and back-office operations and at the same time reduce operational risk?
Off-the-shelf may be best solution
What are the main issues a hedge fund/fund of hedge fund should consider when deciding if it should invest in bespoke software, off-the-shelf packages or outsourcing?
Dynamic data
How can data management help a hedge Dynamic data fund improve its trading and back-and middle-office processes?
Risky business
Risk management is one of main areas of concerns for hedge funds and funds of hedge funds. How can technology support and enhance this area?
Nightmare on Excel sheet
Recent research found a substantial number of hedge funds using Excel spread sheets. What are the risks this poses and why is the use of Excel still popular within the hedge fund industry?
Consolidation of information is key
What are the technology challenges for a hedge fund operating multi-prime broker relationships?
Too little or not enough quandary
What are the challenges associated with integrating front-, middle- and back-office systems within a hedge fund and how can these be overcome?
Security conscious
How can a fund ensure security of systems and data?
Creative cost cutting
What can vendors do to help reduce the cost of technology purchasing, maintenance and upgrades for hedge funds particularly at a time when management fees are being squeezed?