{"id":96,"date":"2023-04-21T09:24:31","date_gmt":"2023-04-21T09:24:31","guid":{"rendered":"https:\/\/iqeq.com\/us\/services\/middle-office\/"},"modified":"2025-06-23T11:30:31","modified_gmt":"2025-06-23T11:30:31","slug":"middle-office","status":"publish","type":"service","link":"https:\/\/iqeq.com\/us\/services\/middle-office\/","title":{"rendered":"Outsourced middle office services"},"content":{"rendered":"
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\n \n Overview <\/p>\n <\/div>\n<\/section>\n\n
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Our outsourced middle office services allow alternative investment managers (hedge\/hybrid) to operate institutional trading architecture from day one\u00a0. Our services enable portfolio managers to focus on their core competencies, such as raising outside capital and making investment decisions.<\/p>\n

We offer bespoke buy-side middle office operations including outsourcing, co-sourcing and advisory, from launch to steady state to wind down for liquid hedge funds.<\/p>\n <\/div>\n<\/section>\n\n

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Security, strategy and system agnostic<\/strong><\/p>\n <\/div>\n

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Optimized cost model<\/strong> for tailored support<\/p>\n <\/div>\n

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Institutional onshore resources<\/strong><\/p>\n <\/div>\n

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An extension<\/strong> of your team<\/p>\n <\/div>\n

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Streamlined processes for increased efficiency<\/strong><\/p>\n <\/div>\n

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Institutional out-of-the-box design<\/strong> for True Alpha generation<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n

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Key services<\/h2>\n <\/div>\n<\/section>\n\n
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Outsourcing, co-sourcing, and lift outs<\/p>\n

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On a day-to-day basis, we perform the role that a manager would use internal employees for \u2013 owning the responsibility for the complete post-trade lifecycle.<\/p>\n

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\u2019re coworkers with our clients, not a counterparty to them. We also work directly in our clients\u2019 source of truth (their OMS\/PMS) and don\u2019t force clients to onboard to a one-size-fits all platform.<\/p>\n

For managers who want to keep their existing employees in place but re-allocate their costs to a fund entity, we\u2019ll 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!<\/p>\n <\/div>\n <\/div>\n <\/div>\n

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Trading architecture design<\/p>\n

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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.<\/p>\n

We ensure requirements are tailored to the strategy being traded, the frequency of trading, the investor base they\u2019ll 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\u2019s best for them, and we don\u2019t force managers onto a one-size-fits-all platform.<\/p>\n

For existing managers, our team will work to understand their existing trading architecture and assume responsibility for current processes. We\u2019ll also make recommendations to enhance the trading architecture and ensure right-size controls and processes are in line with industry standards.<\/p>\n <\/div>\n <\/div>\n <\/div>\n

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Shadow book maintenance<\/p>\n

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We\u2019ll 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.<\/p>\n

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.<\/p>\n <\/div>\n <\/div>\n <\/div>\n

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FX hedging<\/p>\n

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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.<\/p>\n

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\u2019s portfolio management system to design, implement, and run an FX hedging and monitoring program bespoke to your needs.<\/p>\n <\/div>\n <\/div>\n <\/div>\n

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Margin\/collateral monitoring<\/p>\n

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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 \u2013 from account opening through daily operations \u2013 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.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n

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Get in touch<\/h2>\n
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