Risk Management Technology Now Key Part of Prime Brokerages Offering
With the global financial crisis placing a greater emphasis on risk control measures at asset management firms, many low-cost systems providers are now coming to the market with sophisticated technology that was once inaccessible to smaller mid-tier hedge funds, a roundtable hosted by Cuttone & Company and Aite Group, heard on Monday.
Risk management technology is becoming essential to smaller and mid-tier hedge funds, and is now a key part of prime brokerages' suite of offerings, the roundtable heard.
Meanwhile, the current hedge fund regulation which is up for debate in Congress, is also creating a demand for medium-priced risk control products.
"Firms need real-time risk management across multiple asset classes. If they have a desire to grow, they have to bring the technology on board. Firms have started to source out technology so small hedge funds can look like real brokers," said Keith Bliss, senior VP, director of sales & marketing, Cuttone & Company.
