If your data is flowing from disparate sources with little integration or oversight, data inaccuracies are inevitable. To generate the most value from data, the new middle office transforms structured and unstructured data from a variety of sources into valuable information and actionable knowledge. Back- or front-office systems rarely have robust reporting capabilities and, particularly where multiple systems are used, users typically will have different experiences. With a centralised data management platform, data maintenance and storage is not the responsibility of individual vendors. Serving as the key conduit between operations and investments, the new middle office represents the future of asset management where cutting-edge technologies enable the things that have always mattered the most: optimising the client experience, cultivating relationships, delivering optimal risk- adjusted returns, and running a successful business. Pervasive use of OTC derivatives, bank loans and illiquid fixed income instruments in institutional portfolios makes it incumbent on firms to maintain accurate and up-to-date analytics and valuations. In this paper, we consider the above factors, how they are influencing the new middle office and attempt to answer the following questions: Suboptimal and potentially dangerous data practices, Data is the lifeblood of all investment management firms. Finally, and perhaps most important, the data created and saved by vendor applications is often housed only on that vendor application, which means that the organisation’s historical data is sitting outside of the organisation on a system that may not be in existence 18 months from now. Keeping up with evolving client demand is critical to business growth, but legacy IT and operations are holding you back. The middle office is theoretically the guardian of a firm’s important data and is where much of its potential value is harnessed. Furthermore, reporting is often generated directly from various vendor- or service provider- owned systems that are likely to interpret the same data differently. Don’t let new policies and requirements impact your investment strategy or put you at risk for fines and sanctions. 7  Brandon Butler, “Deutsche Bank: Nearly a third of finance workloads could hit cloud in 3 years,” Network World, 14 June 2016. The service provider enterprise data management solution. To learn more about how we can help you, please contact us at our main investment operational centres: SEI Investment Manager Services, 1st Floor, This can be accomplished through direct database access, APIs or via contractual workflows that produce portable data sets that the manager receives. Whether you need support for equity, fixed income, or multi-asset attribution, we’ll empower your organization with the tools they need to make informed investment decisions. There is cost savings as the result of reduced support and maintenance and, importantly, this approach provides data consistency. Data store or data warehouse – a centralised data repository, Data governance – to ensure data quality through real-time oversight, Data services – Application Processing Interface (API) layer for exposing data from the data store or data warehouse and making it consumable by an ingesting application; a good data services layer also allows data usage to be monitored, Data visualisation – Make the data sourced from the data store digestible by multiple end users in a way specifically relevant to them, Technology stack – extensible architecture that allows you to make changes as your platform. For decades, asset and wealth management clients have relied on PwC to help shape their businesses. The need to achieve true operational efficiency in the investment process drives the decision to seek outsourced solutions in the front, middle and back office. "The middle office is comprised of all the people in the business divisions that directly support the front office," says one senior banker. To alleviate the need for clients to develop and implement their own data management platforms, some service providers are now making their own data management platforms available for their clients to use. During this period the term middle office was used to refer to those employees working in financial institutions whose primary role was to calculate the profits and losses realised after trading. Tel: 44 (0)20 3810 7570, SEI Investments – Global Fund Services Limited / SEI Investments – Depositary & Custodial Services (Ireland) Limited,  Once we’ve set the stage with your systems and data architecture, we’ll help you take it a step beyond by exploring options for a differentiated digital experience and collaborative client-first operating model. Its counterpart, the Accounting Book of Record (ABOR), is what a firm believes it held at a specific point in time (typically end of day or monthly) that is updated according to market events and investments once per period. The portfolio performance team likely will use elements of the performance measurement and attribution systems purchased primarily for portfolio managers. Privacy Statement | Terms of Use | Terms of Use Enhance client experience with innovative technology. This unique combination creates seamless partnering with Asset Managers. This approach causes inconsistency and inefficiency within firms, leading to costly and time-consuming daily reconciliations between systems. Service providers are making use of the latest visualisation and reporting tools to produce a suite of charts, diagrams and reports based on their enterprise data stores. In some cases, even the investment accounting function of an asset manager or service provider may be leveraging an application that was built for back-office (fund accounting) purposes. Poorly presented data from the application Knowing the solutions, data providers, and stakeholders at play and understanding your infrastructure needs is the first step in building a strong reference data management program. A centralised data management platform, however, generates reports from a central data store or a “single version of the truth.” Thus, over time, the asset manager can achieve consistent, reliable, trusted reporting across the organisation. Dublin 2, Ireland What can the new middle office do to provide more tools, better information, and improved insights? If a vendor is lost, there is no need to initiate a project to extract all the historical data from that vendor’s system and remap it to the replacement application. Relying on business users to maintain stand-alone spreadsheets and databases makes a bad problem worse, and can be detrimental to the health of an organisation. The successful candidate will possess strong management ski As lines blur between your front, middle, and back office, integrated data, accurate accounting, and efficient workflows are more important than ever. Our consultants can help you assess your post-trade alternatives and design a seamless, exception-based, end-to-end solution to address your trade confirmation and settlement challenges. These providers are providing an API service layer to simplify the integration between applications. Additionally, this move also gives the manager more flexibility to select which systems they use. The data store/ warehouse then supports the various reporting requirements of the middle office, (eg, performance, enterprise risk and client reporting). More information. While the base suite of reports and visualisations can be seen as “standard,” the latest tools are highly configurable. Explain the role of the back office and its importance, including interbank transfers. Middle Office Asset Management jobs in Hong Kong All New Filter 72 jobs Create alert All New Asset Management - Middle Office Associate (Up to 40K) Save. Insufficient history stored by the application. NY 10017 USA In the SEI paper, “The Upside of Disruption,” we explored the idea of “Watsonisation” and how cognitive computing is transforming how things are discovered, interpreted, decided and accomplished and its potential impact on the investment management industry.5 By leveraging cognitive technologies, such as IBM’s Watson or Microsoft Azure’s Cognitive Services platform, asset managers can establish a competitive edge, even as alpha becomes more elusive. While IT departments can support the technology, it’s also necessary to define ownership for the daily governance and stewardship of the organisation’s data. In its most simple form, DaaS employs cloud-based data storage. 4. While most organisations focus on initiatives dealing with structured data, they must not lose sight of the opportunity to derive significant business value from properly harnessing the power of unstructured data. 2. On all levels, the efficiency of the information system is defined by its ability to process transactions automatically and in a secure manner: the byword is STP (Straight … In response to these challenges, we are seeing a trend towards Data as a Service (DaaS) offerings from service providers. The related analysis conducted by asset managers generates large amounts of unstructured data, (eg, documents, PDFs, graphs, etc. 6  Steven Norton, “Big Banks Starting to Embrace Public Cloud, Deutsche Bank Says,” The Wall Street Journal, 9 June 2016. The differentiator in the new operational model is that it uses the data management platform and centralised data stewardship and governance to cleanse, categorise and channel mastered data into the data store/warehouse. The answer is to centralise data management, data stewardship, and data governance and to report data to consumers through an intuitive user interface. Bloomberg’s acquisition of Barclays BRAIS and FactSet’s acquisition of BISAM (as well as industry rumblings of some legacy investment accounting systems to end soon) have highlighted the risks associated with vendor loss. Middle office is an organizational layer of a bank that handles critical and time sensitive controls, execution and decision support functions.As the term suggests, middle office functions typically require close coordination with both the front and back office. For many asset management firms, the cost of operational staff and overhead made up a significant portion of their operating budgets. With our middle office automation solutions, we provide middle office transformation for asset management firms by delivering effective customer management ... Domain expertise in middle office functions such as risk management, compliance etc. You may also work in the information technology department, an integral part of the middle-office, where jobs range from managing contracted systems to designing software. The future belongs to those that safeguard data. As an EDM Council authorized partner, we have a unique view of industry practices and can leverage this perspective and experience to lead your program from strategy through implementation. To gain an advantage in today’s hyper-competitive world, asset managers must not only evolve their operations, but they must also discover new ways to leverage them. The middle office, located very close to the front office, ensures the control and processing of transactions. This environment encompasses a secure data architecture, including data control, governance, quality management and stewardship, as well as advanced reporting and analytics through visualisation tools and reporting. The middle office often shares usage of core systems designed for the front and back offices, with supporting, function-specific applications as required. You need to assess the people, processes, and technology that underpin your client communications operating model to meet new client experience and reporting needs. This is easier said than done. Hindsight should be 20/20 but without the right tools and processes in place for performance measurement, you’re wasting valuable data. Many clients have been hesitant to adopt cloud-based tools over security concerns. In the new enterprise data management platform where all of the data needs to be presented, a robust reporting and visualisation tool is essential. Moving reporting to the data management layer allows for consistent reporting across data sourced from all underlying systems. Alternatively, An enterprise risk team will use elements of the risk systems implemented for front-office risk attribution and analysis. Reporting sourced from different systems generally leads to reports that show conflicting results. This goes beyond optical character recognition, to the next set of applications that can process and analyse large amounts of unstructured data and produce predictive results. Because individual vendor applications provide unique functionality as well as support for associated reporting, clients are increasingly dependent upon the individual applications that support their best-of-breed application model. This approach allows the manager to choose a tool that meets their specific needs or a tool that already has an established presence within their firm. Implementing the new middle office can be challenging, but the improved tools, insight and productivity that accompany it bring tangible benefits, including greater operational efficiency, improved transparency, and reduced business and investment risk. The impact – and risk – should not be underestimated. Each of these barriers prevents the firm from being able to maximise the value of its data. The middle-office supports the front office, looking after risk management, corporate treasury, finance control, and strategic management. If requester uses a non-capital object code for an asset, the automatic asset shell creation is not triggered The Accounts Payable staff who creates the asset shell does not have all relevant information for the asset (e.g., serial number) and must follow up with the appropriate school or office … Select format US/UK. Partnering with the right provider is essential for the latter, piecemeal implementation, because asset management firms need a provider whose data management platform is both source and destination agnostic. The new middle office recognises this issue and presents an environment that allows the business user access to the data they need from a governed, supported environment. Any serious effort to unlock the value of the data coursing through the middle office will require an Enterprise Data Management Platform consisting of: Who has responsibility for owning and managing the data management platform? With mounting regulatory pressures and increased scrutiny on mitigating exposure risk, now is the time to assess your collateral management vision. In addition, the management of the data used by vendor systems is controlled by the vendors, (e.g., the usage of vendor-supplied security master and market data). 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