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FinTech Trends Newsletter Week 3rd April – 7th April 2017
3 Hedge Fund Technology Priorities Not To Be Ignored
Technology was historically an afterthought for many hedge funds and a “check-the -box” item at that. Many firms took the approach that they could get away with the bare minimum on the technology front, often overlooking the reality that technolo- gy today is a critical component to a hedge fund’s daily operations.
Today’s hedge funds are generally embracing the role technology plays in invest- ment management operations. In fact, in today’s competitive landscape and with investors expecting more than ever from funds, technology has really emerged as a competitive differentiator and an asset that can help grow a firm’s business.
Specifically, 2017 will pose its challenges for the hedge fund and investment com- munity, as we fast approach the implementation of the revised Markets in Finan- cials Instruments Directive (MiFID 2) in January 2018 and the investor community as a whole have highlighted data recording and storage and cybersecurity as critical areas of focus. Beyond data storage and security, hedge fund startups continue to face challenges as they look to keep pace with their established competitors and make their own impression on the marketplace.
From a technology viewpoint, we’re highlighting three hedge fund technology prior- ities not to be ignored by investment management firms looking for startup success.
Pick the right hedge fund service providers
This is one of the most critical decisions a startup will make. When it comes to a firm outsourcing any of its needs – whether that be technology, administration, account- ing, etc. – it is imperative that firms do their due diligence in choosing providers that Storm IT Financial offer solutions that can easily manage the growth and contraction of the user, server, market or site base can meet their individual requirements. To find success, firms should look to enter into trusted partnerships with key service providers, appointments offering open lines of communication, flexibility and ultimately trust and accountability.
Know your firm’s vulnerabilities and exposures
Cybersecurity is the single most talked about area of technology right now, not only for hedge funds, but for businesses of all kinds. At a minimum, an investment firm – and not just its IT provider – needs to understand the potential risks that could affect the business and what safeguards are in place to protect those assets. With both regulators and investors asking thought provoking and intelligent ques- tions regarding cybersecurity, funds must have a thorough understanding of the specific hedge fund cybersecurity needs and threats and employ comprehensive strategies to mitigate risk across the firm.
Select an infrastructure solution your firm can grow with
This is one of the most common mistakes new launches make. Many funds assume since they are just starting out, they only require the bare minimum in terms of technology. They are thinking about the present but what they aren’t thinking about is what will happen down the road in two, three or five years time.
Some might say that thinking too far ahead could be detrimental to the firm and set them up for impending failure. Not thinking too far ahead, however, is equally as concerning. Odds are, if a firm is performing well after the first couple of years, it is going to outgrow its current IT systems and infrastructure and, intern, require a much more difficult evolution. By initially taking the time to think through what the firm’s needs could be for the future and provisioning systems that can grow along with them, the startup is in much better shape to minimise the time and cost they spend on technology in the future.
For further advice and assistance or if you have any Hedge Fund/Alternative Investment technology query, call Storm IT Financial.
Storm IT Financial FinTech News & Trends picks: Week 3rd April – 7th April 2017
Azure Network Security
In Azure, security is built in at every step:
https://azure.microsoft.com/en-us/blog/azure-network-security/
IBM Lays Out Cloud Best Practices, Intros New Platform
The value of the cloud is not just in cutting costs…:
https://solutionsreview.com/cloud-platforms/ibm-lays-out-cloud-best-practices-intros-new-platform/
Treasure the City’s true differentiator: Its hundreds of thousands of skilled workers
Without these technology entrepreneurs, bankers, lawyers & manage- ment consultants, London would not the greatest global city…:
http://www.cityam.com/262135/treasure-citys-true-differentiator-its-hundreds-thousands
9 in 10 firms will adopt hybrid infrastructure management by 2020
An overwhelming 90% of organisations will adopt hybrid infrastructure management capabilities by 2020
‘Formidable’ Microsoft Azure continues to close gap on AWS
Microsoft Azure is gaining ground over Amazon Web Services (AWS) in cloud infrastructure:
Microsoft Azure moving from physical to virtual cores
Microsoft revealed that virtual machines in its Azure cloud will soon be defined by virtual rather than physical cores:
https://www.theregister.co.uk/2017/04/04/azure_moving_from_physical_to_virtual_cores/
Big Banks Poised to Scoop Up Fintech Startups, Re- port Finds
PwC survey finds half of global finance firms in buying mood:
UKFast wins contract to host government’s cloud emergency response system
UKFast won the government contract to provide host- ing for the ResilienceDirect emergency response ser- vice:
Microsoft launches Office 365 Threat Intelligence
Microsoft has launched Office 365 Threat Intelligence, among other notable enhancements:
More enterprises use Azure than AWS
More companies are using Azure than AWS with half of those using Microsoft’s platform being corporates
Volume of cyber attacks likely to grow
The volume of cyber attacks on businesses is set to increase according to BAE Systems:
