In the last few years, the financial markets have undergone a dramatic change. While some of this is down to natural evolution, much of the change can be directly attributed to new rules introduced in the wake of the 2007 crisis. Regulators, legislators and central bank governors have been determined to avert another bubble bursting or an unexpected event that could threaten markets.
There is no doubt that these new rules are directly impacting buy-side firms - be they asset managers, hedge funds, insurance companies or pension funds. But while the changes have certainly brought challenges, they have also brought opportunities. Firms that can proactively evaluate structural and operational dislocations in the marketplace and tailor business models to leverage the opportunities while addressing the challenges will be in the best position to stand apart from their competitors. Revised business models call for changes to supporting processes and systems. Buy-side firms should look to re-architect their processes and technology infrastructure with a goal to strengthen risk control and oversight, enhance transparency and improve efficiency of front-to-back office control functions.
Recommended Whitepapers and Articles
Buy-Side Risk Analytics, Chartis RiskTech Quadrant
Microservices: The New Building Blocks of Financial Technology
The Evolution of Counterparty Credit Risk
Technology Trends in Asset Management