Outsourced middle office services

On a day-to-day basis, we perform the role that a manager would use internal employees for – owning the responsibility for the complete post-trade lifecycle.

Our team of experts ensures trades are properly recorded on T-0, reconciling trades, cash and positions on T+1, resolving trade settlement issues, escalating trade breaks and maintaining the shadow book of records for our clients. We’re coworkers with our clients, not a counterparty to them. We also work directly in our clients’ source of truth (their OMS/PMS) and don’t force clients to onboard to a one-size-fits all platform.

For managers who want to keep their existing employees in place but re-allocate their costs to a fund entity, we’ll lift out (effectively hiring your current staff) and charge their salary and benefits to your fund entity. Our professionals are also available on a temporary or as-needed basis!

Our team consists largely of former in-house middle office operational professionals, who will work on a one-on-one basis with clients to design their trading architecture.

We ensure requirements are tailored to the strategy being traded, the frequency of trading, the investor base they’ll be marketing to and the targeted AUM. Our team will lead the selection process for a new OEMS/PMS, implement the chosen system, and run it on a go-forward basis. Our technology-agnostic approach empowers managers to choose the system that’s best for them, and we don’t force managers onto a one-size-fits-all platform.

For existing managers, our team will work to understand their existing trading architecture and assume responsibility for current processes. We’ll also make recommendations to enhance the trading architecture and ensure right-size controls and processes are in line with industry standards.

We’ll maintain an internal shadow book of records for managers to accurately track position level profit and loss and non-trading accruals in real-time. This is a key differentiator when soliciting investments from institutional allocators and the requirements for passing operational due diligence.

Our dedicated team will perform daily position recommendations to monitor portfolio risk and ensure accurate processing of corporate actions while tracking interest income, expense and cost to borrow.

For multi-currency managers, our in-house buy-side professionals will monitor foreign currency exposures on a security, share class, and/or fund level to ensure currency risk is within client-determined tolerance.

When currency exposures breach tolerance, practitioners will highlight the variance to the investment management team and suggest FX transactions to remediate. Our middle office services will work seamlessly within the client’s portfolio management system to design, implement, and run an FX hedging and monitoring program bespoke to your needs.

In a world of non-zero interest rates, treasury management is a key differentiator that puts the middle office at the forefront of value creation. Our middle office practitioners will independently review initial and variation margin requirements – from account opening through daily operations – optimize your portfolio buying power and allow the investment team to focus on alpha generation. On a daily basis, our team will monitor collateral calls and excess from both clearing and bilateral counterparties to ensure collateral levels are within reason. Our team will not only monitor the dollar value of collateral, but also the type, treasury bills, and commercial paper, for example. When collateral movement is required, our team will advise cash movement for internal stakeholder to review and approve. Our practitioners also have expertise in understanding what excess cash is truly available to minimize interest expense.