There are alternative approaches for supporting back-office processing: custodian outsourcing, prime brokerage services, and third party vendor ASP platforms.  Outsourcing is a very complex approach to investment processes and requires a significant amount of analysis and planning.

Clients that have taken this approach have capitalized on many of the benefits listed below.

• Scalable Infrastructure that can be upgraded as technology and market practices change
• Operational and Settlement Risk Reduction
• Robust Transparent Control Environment
• Round-the-clock Support for OTC processing
• Independent Pricing of Assets
• Cost Reduction
• Report Customization across business/department lines

ATI can perform the necessary due diligence that will help determine which of the following or combination thereof is most appropriate for your firm. 

Currently offer services including partnership accounting, risk analytics, (cross) margin, liquidity, credit monitoring and aggregated reporting.  More often, the benefit is to have a consolidated view of all positions and risk analysis, as well as a single reporting platform for all trades executed across multiple brokers.  Providers also act as a single clearing agent, handling all aspects of trade and confirmation processing documentation.

Derivative trade lifecycle functions include pricing, valuation, accounting, confirmation processing, and collateral management. Component based or “modular” outsourcing services are now making it possible for pieces of middle and back-office functions to be marketed as separate services.

These systems are comprised of multiple integrated and component based solutions that provide functionality to support a wide range of complex derivatives, including exotic and structured asset classes. The components can be utilized on a standalone basis or integrated to provide a full service solution to support all functions in the trade lifecycle.