June 16, 2011

One of the big themes floating around this year's SIFMA Financial Services Technology Expo has been the growing push for data consolidation throughout the buy-side. With regulators forcing firms - particularly hedge funds - to demonstrate transparency and operational best practices, demand is soaring for systems that enable traders to see a wide range of complex investment data in one place.

The stricter environment has sprouted a cottage industry of sorts, with technology providers updating data management platforms that aggregate crucial information for trading desks. And this trend isn't solely being driven by the new regulations. Firms are also looking to better understand what their exposures are when the trading day is over.

At SIFMA, GoldenSource rolled out an upgrade to its EDM system, which consolidates a diverse range of data feeds aimed at giving trading desks a clearer picture of asset valuations. And Linedata announced an update to its hedge fund portfolio management system Beauchamp Sigma, which is built to help traders balance demands for transparency both from regulators and their investors.

GoldenSource, a data management provider, says being able to get a single view of an entire operation has become critical with new regulations on the horizon. That ability is also essential to helping firms get a tighter grip on risk.

"With the Dodd-Frank legislation ... and similar regulatory reform in other regions, firms are taking a more structured and proactive approach towards risk management," says GoldenSource Chief Executive Mike Meriton.

"Mitigating counterparty risk is high on the agenda, and companies need increased access to granular data in order to realize a clear, end-to-end view of risk positions."

ABOUT THE AUTHOR
As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced ...