[ N E W S
for real-time reporting, risk analytics, or
investment decision-making. Because
of this, demand has shifted away from
traditional functions and more towards
a model where data from the back-office
can feed into the middle and the front.
Also speaking earlier in the day at the
event, Geoff Galbraith, COO, MAN Group,
played down the idea of the front-to-back
solution fitting all circumstances.
“A one stop solution doesn’t exist and
I don’t think it will,” he said. “We have
changed many different operating mod-
els. We want to be the best at particular
things, but no one can be the best at
everything.”
He added that MAN Group had been
breaking down the operating models
to find the right solution for individual
components.
“A front-to-back solution is a frame-
work of where we can identify individual
“Some of those platforms are
good at one asset class but
not good at another.”
MARK WELLER, MANAGING DIRECTOR OF
EMEA ASSET MANAGEMENT, BROADRIDGE
solutions – whether that is Fintech, or
outsourcing or a tech solution provider.”
Sean Kennedy, head of investment oper-
ations, EMEA, Vanguard, later discussed
the idea of a front-to-back solution versus
using multiple vendors.
“We try to not marry ourselves to
vendors in the trading space because of
the future risk of that,” he said. “Having
multiple vendors and not being married
to one solution can be advantageous.
“I think when a vendor monopolises
the industry in a certain way, it stifles
innovation.”
Long-term plans
There are a range of front-to-back solu-
tions in the market, but recent moves
by custodians and fund administrators
to bolster their front-office offerings
through acquisitions may have made
them more viable options as a one-stop-
shop.
Hot on the heels of State Street’s an-
nouncement, SS&C Technologies agreed
to purchase Eze Software, another order
management system (OMS) provider, for
$1.45 billion. Elsewhere, Citco had been
previously linked with a stake in Light-
Point, an execution management system
(EMS) and OMS provider that also offers
an IBOR platform.
In June, Societe Generale Securities
Services (SGSS) signed up its first French
bank/broker-dealer client to CrossWise,
its newly launched front, middle and
back-office outsourcing platform. UBS La
A N A LY S I S
|
M & A ]
Maison de Gestion, the French subsidi-
ary of UBS, selected SGSS CrossWise to
manage its investment operations across
the entire operation value chain covering
all asset classes.
State Street announced the deal for
Charles River in July, claiming the
acquisition would significantly boost its
“I think when a vendor
monopolises the industry
in a certain way, it stifles
innovation.”
SEAN KENNEDY, HEAD OF INVESTMENT
OPERATIONS, EMEA, VANGUARD
front-office capabilities for asset manag-
ers through CRD’s automated provisions.
Charles River serves more than 300
clients across institutional, wealth, asset
owner and alternative market segments,
including 49 of the top 100 asset man-
agers that in aggregate have more than
$25 trillion in assets under management.
The firm recorded revenues of more than
$300 million in 2017.
The deal is expected to close in the
fourth quarter of this year and State
Street said it expects the acquisition to be
accretive in 2020 and offers “long-term
revenue growth”.
Fall 2018
globalcustodian.com
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