NEW PARADIGM IN TECHNOLOGY - At Asset Managers Tech (AMT), we believe a new paradigm is being established in technology. Also, large financial services firms are beginning to offer the fruits of their own tech innovations to valued clients such as asset managers. Below please find four significant examples of what's driving the new tech paradigm and the future of the asset management industry.
FIRST - "The New IT Paradigm"
API's developed by broker-dealers, for example, that interface with corresponding tech-enhanced platforms at a clearing agent such as DTCC can thereupon enable asset managers or other firms (through their own state of the art API's) to receive information in real time about securities transactions that have been cleared and settled by the agent. This creative trend in API's will continue, and thereby give rise to extensive opportunities for asset managers to provide their clients with exceptionally enhanced data and new levels of service.
Asset Managers Tech believes what is happening with API's is leading to a new set of IT paradigms. For example, internal auditors at firms using such API's will now be required to verify the validity of algorithms that support the development and efficient transmission & delivery of enriched data between and among the various parties' platforms. Of course, these auditing refinements will also become mandatory procedure, and so the entire process goes until senior managers and outside auditors actually sign off on all of these sophisticated changes and processing upgrades. AMT, in its role as a trade association, will be providing the leadership that will be necessary to ultimately afford all firms the chance to learn about these industry-wide activities.
SECOND - "New and Ready to Use Data"
We have also recently learned that several leading broker-dealers in the securities industry want to share their data, including so-called big data, with their clients. These broker-dealers and banks believe that providing such data will be in keeping with the way all firms will be dealing with each other as newer technologies such as AI and Cloud Computing become omnipresent. We know, for example, that pricing information via API's concerning derivative products might, in some cases, be made available in real or near real time by a leading dealer to trading professionals at a buy-side firm. Previously, the value of these instruments may not have been known until many calls or emails had been sent and returned.Once again, AMT intends to be engaged in any industry efforts to revise best practices so that "new and ready to use data" might become more broadly available in many investment markets for the benefit of ultimate investors.
THIRD - "Breaking News about Creative Tech Trends"
Indeed, there is a lot of news about those tech break throughs or accomplishments that are unique to the business or culture of a particular asset manager or third party vendor. The facts concerning these accomplishments are indeed good to know and are typically made available publicly. AMT, in turn, frequently passes along info on these matters for informational purposes. Usually these trends work exceedingly well but tend to be most helpful to the businesses that have created them.
FOURTH - "Regulation"
As extensively reported on the AMT Website and elsewhere, AMT's position is that most regulatory authorities are interested in using "new" technologies in their own activities as rule makers or possibly in connection with enforcement. Most significantly, regulators have represented in various ways that regulatory consideration of "new" technologies might even provide their own staff, along with industry members, a unique framework for gaining a better understanding of the pros and cons of Blockchain, Artificial Intelligence and other recent technology innovations. Accordingly, AMT believes regulatory matters will ultimately take their own natural course in the financial services industry. AMT, in the meantime, is looking forward to working closely with regulatory officials on all of the "new" technologies under consideration by the buy-side.
WE WELCOME YOUR VIEWS AND IDEAS - Please send your comments regarding the above AMT Tech Initiatives to George Marootian, EVP of Technology at Natixis Investment Managers. Mr. Marootian serves as Chair of AMT's Q and A Task Force.
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