By Justin Casenta, SS&C Eze –Front-office technology has evolved. Hedge funds today need a sophisticated front-office engine to differentiate their business. But many systems aren’t equipped to keep pace with innovations designed to streamline trading processes.
All-in-one, not one-size-fits-all
We often hear an “all-in-one” system is what’s required to meet investor demands. But it’s rarely a one-size-fits-all. However, careful technological due diligence can help ensure the system you choose has the necessary advanced trading tools your front office needs to stay ahead.
Even as order management and execution management systems continue to converge, how the consolidated systems work together varies exceptionally. Fund managers want seamless integration, but many standard API integrations aren’t delivering workflow benefits. The real value is in synchronisation, and few platforms have achieved a truly synchronised OEMS experience.
Switching systems is costly, so it’s critical to look for a platform designed to support front-office workflows from the outset. The best all-in-one platforms offer a flexible architecture, so you can choose the entire front-to-back or a componentised rollout iteratively. Ultimately, it’s about creating a seamless and cohesive investment experience.
When expertise matters
Reliability and experience are critical. Working with vendors with expertise is essential to bring systems together and offer insight across the investment process. Working in the front office is about speed and agility. Ask vendors upfront about their clients – i.e., how actively are they trading, how much are they stressing the system compared to your daily workflows, how complex are their strategies? Most importantly, when there are issues – how quickly can you get in touch with live support? Not every vendor can address mission-critical or time-sensitive problems with the urgency and efficiency the front-office demands.
The high cost of falling behind
As we move into a post-Covid new normal, hedge funds continue to diversify investments to stay competitive and attract investors. This environment demands front-office transformation. Automated trading, Algo wheels, flexible what-if modelling and analysis, natively supported multi-leg trading workflows, and tightly integrated compliance workflows are just a few prerequisite tools. Seamlessly integrated, real-time compliance and exposure monitoring across asset classes within the same grids and reports reduces operational risk. At the same time, automation diminishes manual processes and shifts the focus to alpha-generating activities.
The cost of falling behind in the front office is higher than ever. Embracing the trends by transforming your front-office experience ensures your trading team is equipped to operate more efficiently and effectively. With better insight to make informed and immediate market decisions, you can execute ideas and meet the best execution requirements without sacrificing speed-to-market. You’re differentiating your business in the front office but are you prioritising the front office in your technology decisions? If you aren’t, you should be. By partnering with an experienced vendor that is reliable and flexible, hedge funds will be well-positioned to avoid a technological deficit in the post-pandemic era.
Justin Casenta, Director, Sales Engineering, SS&C Eze
Justin Casenta joined in 2011 and is a Director of SS&C Eze’s Sales Engineering team in New York. He leads a team of sales engineers responsible for presenting in-depth and tailored product demonstrations to prospective clients and serving as experts on SS&C Eze products throughout the sales lifecycle. He worked as an Implementation Manager at FlexTrade Systems from 2017-2019 before returning to SS&C Eze to take up his current leadership role. Justin graduated from Fairfield University with a bachelor’s degree in Information Systems and holds an MBA from Pace University.
