Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
Under pressure: managers look to tech for trading help
(pictured: Will Geyer)
As Australian financial markets move to T+2 settlements from today (March 7), the investment industry is looking increasingly to technology to solve growing regulatory and investor demands. A global broker and fintech group, ITG, believes technology can be a performance differentiator.
ITG launched a new trading and portfolio management platform last year. It includes integrated execution, order and position management tools designed to improve operational efficiency and lower costs. The firm hired Sydney-based Gaye Anable from Bloomberg to run the new platform products in Australia.
Will Geyer, ITG’s global head of platforms, said that long-only and hedge fund managers in Australia faced pressures on several fronts. “Regulators and investors are demanding more transparency than ever before. Meanwhile, competitive forces are pushing fees downwards. We think we can help,” he said.
Geyer will visit Australia from the US in March for a series of panel debates with institutional investors, hedge funds and the financial IT community, discussing how the industry is turning to technology to solve new regulatory and investor demands.
He said last week: “Australian asset managers hold one of the world’s fastest growing pools of funds, and are also active adopters of new technology and innovation to help manage costs for investors. These debates will focus on how the Australian industry is changing, what investors and regulators are now asking for, and which new technologies are really helping”.
Geyer said ITG’s clients increasingly needed to look across asset classes – including equities, fixed income, FX and over-the-counter derivatives. They want a single view of their trading applications, P&L and risk management. They also want ready access to liquidity.
He said technology could be used as a differentiator for both fund performance and in attracting new investors. “In spite of the speed of industry change, by embracing new technology it is possible for asset managers to future-proof their processes.”
Meantime, the ASX confirmed last week that Australia’s long-planned move to two-day settlements would start today (March 7). The New Zealand market and the Australian Financial Markets Association, for fixed interest products, will also move to T+2 today.
ASX said in a statement: “Reducing the settlement period from the current T+3 cycle creates capital and margin savings for industry, and a faster settlement of transactions for investors, meaning they receive their cash or securities sooner. It also lowers systemic risk for the market as a whole by reducing counterparty risk for investors, participants and the clearing house.”
