Looking for Stability in an Unstable World
Investment Operations Observations Blog Series, Part 1
Looking for Stability in an Unstable World
Investment Operations Observations Blog Series, Part 1
April 2020
By Peter Keaveney
The world has certainly changed in just the past few weeks. Communities around the globe battle the coronavirus while we deal with significant swings across global markets, the pressure is on asset managers to keep things running smoothly while working offsite.
+ 260%
- Increase in annualized run rate for trade volumes over the four weeks ended March 20, 2020*
- Though the activity seems to have leveled off over the past few weeks, levels are still 35-40%* higher than pre-pandemic norms
The value of accurate pricing, sufficient liquidity and actionable data has never been clearer. Yet many companies are grappling with a technology deficit that threatens the underlying systems needed to support these important functions.
BNY Mellon Investment Operations has helped our clients manage the significant increase in volumes and volatility by flexing our global operating model, utilizing strong resiliency capabilities, leveraging investments in systems capacity and our laser focus on STP and automation.
An outsourced solution can help reduce operational risk
Outsourcing critical Investment Operation processes to a large and stable provider can help asset managers gain new insights, enhance accuracy and efficiency, and contribute to more confident investment decisions.
BNY Mellon’s new Investment Operations solution improves automation and integration capabilities, and offers enhanced data management and control for asset managers. The platform offers a full lifecycle of investment activities that supports all product types.
We help you manage complexity—from system integration to trade support to new product launch and distribution across global geographies—so you can reduce operational risk and have greater transparency to grow your business.
You can use our complete suite of capabilities for a front-to-back solution, or choose the modular solutions that best fit your needs:
- Trade support
- Derivatives and collateral
- Bank loans
- Investment book of record
- Investment performance
- Data management
The confidence of a resilient platform provider
Throughout BNY Mellon’s history, stability and dependability have been hallmarks of our business. In these difficult times, our commitment to resiliency is unwavering.
As a globally important financial institution and a trusted steward for our clients, we know it is critical that our systems and applications continue running as usual. Our unparalleled investments in technology are proving their value today, enabling us to provide business and operational continuity with minimal interruption.
Our control environment remains strong, and we are ensuring that our capital and liquidity ratios remain within internal risk budgets and meet regulatory requirements. Clients can depend on us to help them operate seamlessly by delivering business services through the current disruptions.
Solution Spotlight
Trade Support enables new trading strategies, new asset types and new markets
- Our Trade Support service offers a scalable infrastructure to manage post-trade execution lifecycle seamlessly for marketable, foreign exchange and derivative assets.
- The service provides a single point of entry to capture instructions from clients, supports multiple trade capture formats including standard adaptors and offers flexibility for multiple client order management systems.
- Our capabilities are underpinned by a global operating team comprising subject matter experts with deep industry expertise in the investment management industry.
The result: During the current upheaval, trade date confirmation rates remain in the 97% to 99% range, with the primary reason for fails being a broker’s inability to deliver securities. These are typically resolved within one to two days.
Making investment operations more seamless and stable
Outsourcing investment operations can help asset managers meet the challenges of increased data management and business requirements, so they can focus on their core competency of managing money – in good times and bad.
“I want to commend BNY Mellon for the herculean efforts you are all putting forth under the circumstances we are facing.”
— Jim Fink, MD and CAO, Voya Financial Advisors
*BNY Mellon data, March 2020