Five Ways Hedge Funds Can Enable Innovation Through the Cloud
This week on the blog, RFA UK Managing Director George Ralph shares five ways hedge funds can enable innovation by using cloud based technology.
By now, most hedge funds have likely heard about the many benefits of utilizing cloud based technology, which range from enhanced scalability and cost effectiveness to an improved firm wide security posture and a more flexible and efficient work environment. But beyond the traditional benefits, cloud technology is also enabling hedge funds to innovate by not only allowing them to stay ahead of their competition, but by also helping them to meet regulatory requirements. Read on to learn how you can leverage the cloud to achieve transformational activity and optimal performance.
One: Combine information from many sources into one place. Back end systems, front end trading systems and research data can all be combined in a single place, providing an invaluable 360-degree view. This allows a fund manager to research opportunities, execute trades, and communicate back to the office, all from one device, and is what many fund managers are looking for in their IT systems.
Two: Get technologically ahead of the competition quickly and effortlessly by leveraging multi-tenant cloud solutions. Multi-tenant cloud solutions allow firms to take advantage of upgrades andupdates immediately, without a time consuming roll-out. Hedge funds using the most up to date technology will inevitably be faster, more agile and ultimately more competitive than those operating on outdated systems.
Three: The cloud is one of the best mobile enabling platforms available. By moving applications and infrastructure to a secure cloud environment, hedge funds can ensure that users have access to real time data and intelligence whenever they need it. Comprehensive mobile security and management strategies, which utilize encryption, multi factor authentication, device pinning, remote data wiping and information rights management approaches in a layered approach, will ensure that sensitive data is properly protected.
Four: Provide investors with a secure, simple platform to access their investment data and interact with their fund manager and administrator. With transparency and openness moving up the importance ranking in legislation such as MiFID II, reforms to OTC derivatives and recommendations from the Hedge Fund Standards Board, investors are looking for firms that provide a transparent view of their investment strategies and techniques, the instruments to be used, and the process for managing risks. Hedge funds that can offer investors this transparency and ease of access to specific investor data will find themselves ahead of the game.
Five: Leverage cloud based risk management and compliance solutions to ensure that your hedge fund is able to adhere to regulatory mandates. Fund managers require systems that can perform customized, real time risk analysis and compliance checks before placing orders. By using secure cloud based solutions, managers can perform these checks regardless of their locationsecure and without delaying time critical trades.