Omgeo: Hedge funds need to think like traditional asset managers
Matt Nelson, Executive Director of
Strategy at Omgeo LLC, a financial
operations expert, warned in an article in March that the global regulations,
including Dodd-Frank in the US, and
EMIR (European Market Infrastructure
Regulation) and the AIFMD in Europe,
would have a profound and widereaching
impact on hedge funds and
consequences on this industry may be
He cited a sizeable hedge fund firm,
which had recently decided to return their investors' money. Among their
reasons for doing this were the daily challenges of dealing with global
regulations, demanding clients and difficult markets. Nelson expects more
firms to exit. He also expects some to move to more lenient countries to
avoid the stricter regulatory regimes of the US and the EU.
"There's also the possibility that more hedge funds will look to outsource
their operations to specialty fund administrators, custodian banks or prime
brokers," he added. "But many firms, particularly those focused on growing
and expanding their business, will invest internally in operations and
technology and will be looking across the trade lifecycle for opportunities
to automate and increase efficiency."
Omgeo provide solutions to investment services firms including hedge
funds, traditional long-only managers, brokers and custodians. Those
services essentially connect market participants and allow them to
automate their post-trade processing - which includes the events that
occur between the ex......................
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This article was published in Opalesque's New Managers
a top-down monthly analysis, news and research publication on the global emerging manager space.