A number of buy-side firms including hedge funds, asset managers, and insurance companies are adopting solutions from FIS that are historically aimed at sell-side clients, such as its Cleared Derivatives and Cross-Asset Trading and Risk platforms.
In a press statement, the company said that as buy-side clients face pressures to find new revenue streams, reduce risk, drive operational efficiency, and deliver new value for their customers, it is giving these firms new capabilities via its sell-side solutions.
Historically used by clearing members, FIS’s Cleared Derivatives platform has seen new adoption by hedge funds and other buy-side firms in order to access trading venues and clearing houses directly, in turn helping reduce their counterparty risk and freeing up capital.
Similarly, FIS’s Cross-Asset Trading and Risk platform, which traditionally features sell-side capabilities, is expected to improve asset diversification for buy-side firms as well as scale up new strategies for revenue growth. Buy-side clients have been using the platform for features including real-time controls for trading, order management, profit and loss, and general ledger. In the third quarter of 2023, FIS signed new client contracts for this platform with several buy-side firms.
