InvestOps: 2018 Priorities for North American Buy-Side Firms

Jan 24 2018 | 5:53pm ET

80% of North American buy-side firms look to system consolidation as their top strategy for reducing operational costs, according to a new report from InvestOps USA.

These finding signals a rising tide of operational and cultural change confronting the current status quo in investment operations, driven by increasing pressures for cost reduction and support for overall profitability.

The research report, conducted by WBR Insights, the research division of Worldwide Business Research, surveys 100 North American buy-side firms in Q4 2017.

It captures industry insights from the directors and heads of Investment Operations, Chief Operating Officers (COOs) and Chief Technical Officers (CTOs) across the buy side, including asset management firms, institutional investors and insurance companies.

The following are stated as the top three operational challenges in the front office:

  • An overwhelming 89% of operations stated the provision of timely and accurate start of day positions and cash, as their top challenge in supporting front office staff.
  • 80% cited difficulties in the creation of options to trade new asset classes and strategies in a timely manner.
  • 67% struggle with accurately measuring firm-wide limits and counterparty exposures.

“The report clearly shows the transformation that is needed if investment operations teams are to continue to meet their role and expectations, in a fee pressured environment,” said Lauren Harrison, head of InvestOps Research, WBR Insights in a press release.

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