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Managing change in an ever more vigilant market

[fa icon="calendar"] 24-Jul-2012 10:20:00 / by Bill Strachan

Financial markets and regulatory bodies continue to assert pressure on organisations in the face of growing demand to control risk and re-structure balance sheets. No organisation can afford to be ill-equipped to trade in the market. Nowadays the ability to hedge positions efficiently and transparently is an absolute necessity.

Financial markets and regulatory bodies continue to assert pressure on organisations in the face of growing demand to control risk and to re-structure balance sheets. No organisation can afford to be ill-equipped to trade in the market. Nowadays the ability to hedge positions efficiently and transparently is an absolute necessity.

In recent years, as market participants and fund managers have looked for different ways to manage their investments, the financial services industry has responded by saturating the market with an extensive range of hedging derivative products. However, both recent market confidence and renewed regulatory pressure, has set commoditisation firmly on course to take place. Whilst hedging and derivatives have been very topical recently, the key to managing the bigger picture lies primarily within the effective use of front office applications. Without real-time positions, accurate cash-flow data and real-time limit monitoring, a trading room cannot operate effectively.

In this ever changing regulatory market, the challenge to IT infrastructure in organisations has been how to support business growth, monitor risk effectively and introduce technical innovation to improve workflows. The approach to “Managing Change” to meet these challenges varies from one organisation to another. Many organisations will feel that they already have the right technical foundations for supporting certain asset classes and required business processes but may need to enhance their exposure management capabilities or extend their asset class coverage with real-time fingertip control of their trading operations. It’s recognised as impractical, costly and undesirable to replace existing legacy systems in their entirety and therefore the approach being adopted is to supplement IT infrastructures with new external and complimentary solutions. This approach allows organisations to leave legacy systems in place, often unaltered and in operation, at the same time as the integration of new solutions to existing infrastructure. Another benefit of this approach is that the value-add and return on investment can be realised very quickly with disruption being localised rather than spread across an organisation.

The key to this approach is the ease of integration. The provision of seamless integration between systems is a ‘must have’ these days and information has to be two-way, real-time and positioned within the IT infrastructure to bring about efficient workflows and optimised STP.

At Eurobase, our Siena Front Office can be easily and seamlessly integrated with core legacy systems to provide extended trading opportunities, much greater access to real-time data and fingertip control of trading operations. This not only includes a broad range of tradable asset classes but also real-time integrated positional and limit information – much needed within an ever more vigilant market. Our customer satisfaction feedback and references, obtained through working with our clients in managing change through the integration and seamless deployment of our software speaks for itself.

Topics: Banking

Bill Strachan

Written by Bill Strachan