Citigroup Inc. this week announced the launch of Hedge Fund Middle Office services, a daily operational suite of solutions for hedge fund managers. Its services include a comprehensive suite of post-trade and pre-settlement services, which are scalable and modular. The services are global and include technology solutions that help manage daily trade processing and P&L reporting, OTC confirmation and valuation, collateral management, corporate action processing and cash management.
Aite Group senior analyst Denise Valentine, commented on the release: “Hedge funds in this new regulatory-conscious environment will seek out the means to institutionalize their business properly. For some, the outsourcing path will be the easiest approach. No need to worry about staff and training, whether assets under management support infrastructure costs, and there’s the added benefit of the third-party provider’s independence and ability to industry benchmark. Expect competition in this area as the big banks capitalize on a one-stop shopping offer.”