How to identify a strong asset and investment management platform
Buy-side firms are under pressure to get settlement and the rest of their post-trade operating model right. There’s an increasing need to have a whole-firm solution, a technology that connects the dots of the operating model and allows for optimal flexibility. But instead of building those capabilities in house, firms are now searching for out-of-the-box, integrated solutions from a reliable technology partner.
As part of our Buy Side Forum held September 13 in New York, Bloomberg Head of Product, Post-Trade Katia Falina sat down with Naveen TV, Managing Director, Global Head of Extended Enterprise and Data Strategy, Securities Services, J.P. Morgan, and John List, Middle Office Product Manager at Northern Trust to discuss their three biggest wins from using Bloomberg’s strong asset and investment management platform.
1. Consolidated models
J.P. Morgan turned to Bloomberg AIM to help work with clients who each were using different models, according to Naveen TV. “We’re taking that pain away from them and saying, let us figure out and build that certified connection as to how we take data from AIM, and also give data back to you on behalf of all of our clients so that we can also build it efficiently.” The result is a seamless, front-to-back experience where the firm’s clients work with providers without even knowing what is seamlessly connected,” he added.
2. Complete views of trades
Northern Trust worked with Bloomberg on an integration model, improving on its settlements, according to List. One factor that pushed firms to get standard comprehensive views of trades is Europe’s CSDR financial settlement regulations. Also, especially for OTC derivatives, firms need to be able to take transactions, then confirm, match and settle them for a complete view extending through the middle office, back office and custodian.
3. Seamless provider connectivity
Market participants want to use their platforms or devices of choice, with all of those seamlessly connecting to work with data. That would be an ideal outcome, TV said. Cloud sharing and APIs have brought the market closer to this ideal, although institutions are playing catch up with what individual and retail investors can do to connect and communicate.
How we can help
Bloomberg Buy-Side Solutions offers post-trade capabilities and is getting more attention in the form of product development and investment. Bloomberg has three tenets of post-trade product development: consolidation across workflows and assets, automation to minimize manual intervention, and operating model flexibility. Keeping these capabilities and traits at the forefront is key to Bloomberg’s position as a technology partner that can support whatever post-trade operations model your firm chooses.