The SIFMA Ops conference recently celebrated its 50th anniversary in Orlando. Prominent speakers such as Joe Torre shared insights on leadership and work ethic, and there were discussions on regulatory priorities, operational resiliency and alternative investment operations. The conference kicked off by reflecting on the history of the Depository Trust & Clearing Corporation (DTCC) and its role in the transformation of the U.S. capital markets. Notably, trading volumes have increased significantly since the 1970s, with physical certificates being replaced by digital systems.
But what about alternatives?
Demand for non-traditional investments is growing, and they’re projected to make up a quarter of the global investable market by 2025, according to the Chartered Alternative Investment Analyst Association. Because of the diverse nature of alternative products, it has been challenging for broker-dealers to develop solutions for operational functions.
The broker-dealer back-office environment is currently inefficient and lacks scalability. Limited automation, complicated process flows and the absence of standardization result in a significant amount of resource-intensive work. Although some automation is offered by DTCC's Alternative Investment Product (AIP) Services, the majority of products are not traded on this platform.
A better strategy: SS&C ALTSERVE™
ALTSERVE simplifies processing, improves transparency, and reduces risk. It leverages custom-built technology and expert staffing, drawing on SS&C's extensive experience in broker-dealer and alternative investment servicing—from fund and account setup, transaction processing, position verification and reconciliation, to transmitting the data securely back to the broker-dealer in a consistent format. This saves firms from costly capital expenses while giving them the ability to grow their alternative investment offering.