July 24, 2017
SimCorp, a leading provider of investment management solutions and services to the global financial services industry, today announced the thought-provoking findings of its InvestOps commissioned whitepaper, titled “Front to Back: Optimizing Cross-Asset Investment Operations”. The European-focused report finds client demands, regulation and cost pressures to be the biggest drivers of change, and points to the need for a simplified operating model to weather the current storm of regulatory and market challenges.
The InvestOps whitepaper surveyed 100 European Heads of Operations from asset management firms, hedge funds and institutional investors. The report explores the convergence of the front, middle, and back office, and how it redefines the role of data and investment management systems. It follows a similar survey based in North America. Both whitepapers delve into buy-side firms’ current IT operations and their plans for technology infrastructure in the immediate future.
With echoed concerns from both continents about the need for increased automation across activities such as corporate actions, collateral management and alternative investments, the latest findings provide colour on the shared issues troubling the European and American asset management industries. In fact, automation has become such a challenge for operations teams across the buy side, that it featured as one of the top strategic objectives for both European (46%) and North American (54%) Heads of Operations.
Regulatory challenges also featured high on the agenda. Interestingly, Solvency II poses the most operationally problematic regulation for 74% of European buy side firms. Meanwhile, North America’s preoccupation with Dodd-Frank featured second highest in that region (61%). One regulation that is looming over both European and North American firms as the 2018 deadline nears and the implementation window narrows, is MiFID II. The global regulation continues to dominate as one of the most demanding regulations on operations and compliance across both Europe (67%) and North America (64%).
As the adoption of multi-asset class models continues globally, the growth of financial instruments in the alternative investments space is multiplying rapidly. According to the survey respondents in both Europe (45%) and North America (36%),…