Regulatory and operational risk are financial drivers for buyers of derivatives management software.
Boston, MA, March 17, 2008 – A new report from Aite Group, LLC provides insight into the hedge fund community's concerns, preferences and priorities for technology, operations, regulation, valuation and outsourcing. The report is based on an online survey of senior-level executives at 20 hedge funds, mostly with more than US$1 billion in assets under management and representing a broad range of investment strategies.
According to the report, hedge fund firms are increasingly reliant on technology to support their business infrastructure. Priorities on the agenda include handling market data, the integration of systems, and addressing the challenges of manual OTC derivatives. Still, hedge funds see tremendous room for technology improvements, within their own shops and with their providers, as they struggle with automation, connectivity, derivative handling and data access.
"Hedge funds are using technology and internal control processes to enhance compliance and risk operations," says Denise Valentine, senior analyst with Aite Group and co-author of this report. "And every day, hedge fund firms become smarter regarding their operations and technology options."
This 29-page Impact Note contains 27 Figures. Clients of Aite Group's Institutional Securities & Investment service can download the report.