Competitive Advantage

FIVE MIDDLE OFFICE PRIORITIES FOR 2016

With the explosive growth of data, compliance requirements and demand

from internal and external clients, the middle office is facing a period of

unprecedented transformation.

ALL CHANGE

Here are five priorities in 2016 to meet the challenges and

gain competitive advantage.

5ALL CHANGE

PRIORITY #1 DATA MANAGEMENT

The challenge: More data, coming from different sources and handled by incompatible legacy systems.

Place data, such as reference, market,performance and risk information on one system.

Cleaner, more accurate data which only needs to be handled once.

The solution:

The result:

“Investment managers identify standardization as a route to achieving higher

rates of automation.”OPERATIONAL CHALLENGES FACING INVESTMENT MANAGERS IN 2015, SWIFT

PRIORITY #2 IMPROVING OPERATIONAL EFFICIENCY

The challenge: Holding data in one place is the first step towards improving performance, removing manual processes and achieving scale economies.

Using improved analytical tools makes it easier to provide internal and external clients with the analytics they need. This improves middle office performance and speeds up delivery to data users.

The middle office is better able to respond to the organization’s internal and external clients.

The solution:

The result:

PRIORITY #3 RIGHTSOURCING NEW TECHNOLOGY

The challenge: To apply the correct tools to the data now at the disposal of the middle office.

The middle office remains the gatekeeper for all data, whether used for risk control, performance measurement, compliance or management information. But, it now needs to accept the importance of sharing the data, using self-service tools to enable users to collect their own analytics from the middle office central source.

The middle office uses the best available technology to protect data, but share it throughout the enterprise.

The solution:

The result:

“Economic uncertainty, volatile market conditions… and an

evolving regulatory environment are likely to continue for the

foreseeable future.”TOP ISSUES FACING ASSET MANAGERS, PwC

PRIORITY #4 RESPONDING TO INCREASED REGULATION

The challenge: Meeting the demands of increasing and ever-evolving regulation.

Because data is held in one place, responding to compliance requirements becomes easier and more efficient. The focus therefore is upon quickly understanding new compliance requirements and developing the analytics that meet them. No fundamental change to the base data is required, just to the tools used to analyze it.

A quick, accurate and competent response to changing regulatory demands.

The solution:

The result:

PRIORITY #5 WORKING FROM THE SAME PAGE

The challenge: To end the silo-approach to data and analytical functions.

The middle office has access to one data source, becomes more operationally efficient and has the tools at its disposal to break down the traditional barriers to collaboration.

Performance and risk management become aspects of the same data. Performance is like a movie, changing and evolving with time. Risk management reporting is a snapshot in time. The middle office facilitates both from the data at its disposal.

The solution:

The result:

IN SHORT: FIVE MIDDLE OFFICE

PRIORITIES FOR 2016

5

2016

2 41 3Generate cleaner,

more accurate data which only needs to

be handled once. Take out the need

for recalculations to save time and effort.

Improve operational efficiency using new analytical tools. Combine performance

and risk for more advanced analysis.

Maintain the middle office’s role as the gatekeeper for all

data, but accept the importance of sharing

this data using self-service tools.

Hold all the data in one place to

make regulatory compliance and reporting easier

and more efficient on demand.

Break down the traditional barriers to collaboration so that

performance and risk management

become aspects of the same data.

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