Front office systems replaced basic spreadsheet applications and paper processes and have grown to be a sophisticated support tool for fund managers, dealers and compliance officers. Investment managers now need a system that can support a more structured and standardised investment approach, as well as an increasingly complex and regulated marketplace.
COOs of investment management companies are still investing in front office systems, because many of their original expectations have not yet been met. Changes in regulation, the types of assets that need to be supported and advances in technology mean it’s a never-ending journey. Furthermore, there are innovations in buy-side dealing that are moving in from the sell-side; the report shows how these will impact front office systems and what asset managers need to think about next.
The research then sets out what front office systems were initially expected to deliver and how many of those benefits have actually been realised; we explore what lessons have been learned to make future implementations easier and what lies ahead.
Importantly, the research describes the benefits of a good front office system implementation and gives hands on advice for avoiding the pitfalls.
Contact: Clare Vincent-Silk
|Management Summary 1
1.0 Introduction 3
2.0 History and Scene Setting 7
The evolving business
What system support was available?
What were the key drivers of investment?
The changing client market
3.0 Case Studies 17
Case Study 1 – Keeping Focused
Case Study 2 – Second Time Around
Case Study 3 – Partnering to Success
Case Study 4 – Big Change Fast
Case Study 5 – Introducing Derivatives
Case Study 6 – Problems with Data
Case Study 7 – Small and Nimble
Case Study 8 – Data Payback
4.0 Lessons Learned 33
Buy or build?
Benefits and costs
5.0 Current Big Things 51
Alternative trading systems
Direct market access and algorithmic trading
Transaction cost analysis
Markets in Financial Instruments Directive
6.0 Planning for the Future 69