3 buy-side essentials for better uncovering investment insights and automating market actions
Buy-side investors are facing operational challenges from changes driven by standardization, the potential of cloud resources and natural language processing, scalability and diversification of asset classes.
As part of our Buy Side Forum held September 13 in New York, Matthew York, Buy-Side Product Strategy at Bloomberg, shared what he sees as the greatest worries caused by these. This progress is raising questions about scale, open architecture and how to integrate intelligence to find investment insights and automate market actions.
1. Scale
Asset managers typically grow between 6 and 10% per year. They need a platform that can grow with them. Bloomberg is working to make its leading order management system, AIM,“bigger, faster and smarter,” York said, so that it can withstand the next big stress on the market as well as it did with Covid in March 2020. The goal is to improve AIM’s order and execution management system fill process by 40 times 2020 levels.
2. Open architecture
Buy-side trading solutions should work using an open architecture, York said, because that is key to working with partners. Bloomberg is modernizing and improving the consistency throughout its API frameworks, to better support open architecture. This will allow APIs to bring various systems together to communicate and collaborate on trading and trade management. A well-governed, well-monitored, easily inspected and standard infrastructure can, in turn, more easily scale and grow with its users.
3. Integrating intelligence through interoperability
Having the strong foundation of an integrated Portfolio Order and Execution Management system (POEMS) can provide seamless integration of portfolio analytics into the order & execution process as well as give the ability to surface targeted liquidity to enrich the decision support process. Portfolio managers then can more easily tell if they are optimizing their portfolio and complying with their clients’ mandates, York said. Interoperability makes it easier to find investment insights.
How we can help
Bloomberg Buy-Side Solutions and its related APIs and trade execution systems have improved on scale, maintaining open shareable architecture and integrating intelligence consistently with standardized data.
These are key priorities as clients are faced, more than ever, with operational challenges. With the right enterprise technology partner, not only can you enhance operational efficiencies but you can also unlock new investment insights. Learn how you might achieve both with the help of Bloomberg Buy-Side Solutions.