Investment Solutions Consultants (ISC), the leading Investment Management consultancy, today announced the launch of their Derivatives Operational Health Check service. The service will provide a structured review of managers’ existing derivative operations, systems and processes from front through middle to back office in order to provide pragmatic advice designed to expedite the delivery of the robust and scaleable operating model required to manage derivatives. The service will cover the following functions:
· Portfolio modelling and risk management
· Compliance (including UCITS III regulations)
· Trade execution and messaging
· Confirmations, novations and terminations
· Pricing and valuations
· Collateral management
· Lifecycle payments and settlements
· Performance and client reporting
· Data management
· ISDA documentation
· Governance structures
Sean Sprackling, ISC partner explains, "Derivatives within investment managers are moving inexorably from being regarded as state-of-the-art, esoteric instruments to becoming sine qua non. Consequently, it is becoming more important to develop an operating platform providing both the freedom for managers to deliver the returns they seek whilst at the same time delivering the control and risk mitigation they require to satisfy regulators, investors and trustees. We aim to bring to bear the considerable experience in derivatives that we have built up within ISC to assist our clients in developing the platform to empower them to manage the complexity inherent in trading these instruments. "
Julian Manfredi, ISC partner, adds "Our emphasis is on providing pragmatic advice and solutions which spring from our derivatives experience stretching back over 15 years. We recognise that the current systems and resourcing landscape presents investment managers with some thorny issues. In many cases, the application of sell-side technology, people and process is not of itself sufficient to take account of the requirements of the buy-side. Our experience assists our clients in finding the most suitable solution from the perspectives of cost, control and investment flexibility."