2016 Year in Review: POINT, Brexit, Elections, Oh My!

Posted by Erika Alter, Global Head of Commercial Strategy, BISAM on Dec 28, 2016 1:01:47 PM
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A_Glimpse_at_the_Near_Future_of_Performance__Risk_Integration.jpg’Tis the season for year-end reflection, so drawing inspiration from last week’s farewell post by Peter Ellis, I asked several of our regular BISAM blog contributors to share what they deemed to be the biggest surprises of 2016, and their predictions and recommendations for 2017. To be sure, Bloomberg’s announced acquisition of Barclays POINT and this year’s geopolitical landscape - from Brexit to multiple global elections - reigned as the biggest surprises of 2016. The impact of these events remains to be seen as we move into 2017, but will undoubtedly increase demand from investors, regulators and internal stakeholders when it comes to portfolio analytics and the need for ever-more innovation in the ways that firms approach, manage and report on performance and risk. To that end, here are some final thoughts for the year from our BISAM Insights team…

 

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Lisa Conner
Director, Data Management at BISAM

 

"As a data manager, I've been very interested in the M&A activity of 2016 - the Bloomberg & Barclays indices, IDC & ICE, IHS and Markit, ICE & S&P’s Global Pricing Evaluation Service – big names and likely a big impact on data availability and costs in the new year.  Further, I think the 2016 geopolitical changes will have a direct impact on data requirements for risk and performance managers in 2017 as firms adapt to potential effects on market stability, volatility and regulations. To that I say: Clean up that data and related processes!  The more governance and controls that firms have around market data usage and implementation across front/middle/back-office operations, the better off they will be to align with regulatory and compliance requirements."

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Bénédicte Godet
Global Head of Marketing & Communication

"Driven by the POINT transition, demand from more sophisticated investors and increasingly more collaboration between the front and middle office, the integration of performance and risk has been a consistent conversation in the industry and on the agendas at the major asset managemet conferences in 2016, and this will continue in 2017 from what I’ve seen. Many of our customers and prospective customers are looking to BISAM and other industy experts for more insight on the practical implications of 'unified performance and risk' for their clients, their teams and their overall operations."

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Ivan Mitov

Head of Quantitative Research

 

“I was surprised not to see more negative market reaction* to the biggest geo-political events this year:  Brexit and the US presidential elections. As we head into 2017 with numerous ‘unknowns,’ I think that  organizations will be carefully assessing their approach to market risk management and reporting, and invest in market risk systems that will help them to more proactively measure and manage risk, and to respond more readily to client demand and regulatory requirements in the new economic and political environment.” 

*Throughout the year, the BISAM quant team published multiple risk analyses in response to market events and industry headlines. You can view all of their research here: http://blog.bisam.com/topic/risk-management

 

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Sean Murray
Director,
Product Strategy

“Certainly Bloomberg’s acquisition of POINT and the unexpected amount of uncertainty it provided in firms' future state plans took the industry by surprise in 2016. As we move into 2017, I think we'll see a continued 'middle office’ication' of front office needs driven not only by POINT-driven considerations, but also the need to more closely align performance results with the investment process, and to quantify the decisions that portfolio managers make on behalf of their clients. As we move into the new year, I would recommend that asset managers do a 360 review of their technology and ask yourselves: Is it answering your questions?  Your clients' questions? Your managements' questions?  Does it effectively tell the accurate story of your alpha in their language?"
 

Now, as ever, BISAM remains actively involved in market research and committed to keeping the industry empowered and informed. We look forward to continued discussions within the BISAM community and across the buy-side industry. And with that, I wish you and yours a happy new year and look forward to seeing you back here in 2017!



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Topics: Market Trends

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