Manish Masand, TCS Financial Solutions
The bulk of position management applications in financial institutions reside on aging platforms that pose myriad challenges. High operational risks arising from low automation, poor data quality, and high running costs coupled with technology risks are typical problems that organizations are faced with; not to mention the limitations implicitly imposed on business growth. The dynamic nature of regulatory changes across the globe and introduction of new data standards poses a gargantuan challenge for a legacy system to keep up with.
The capability of position management systems, being at the very heart of securities processing services will be a key driver for platform modernization. Selecting a best-of-breed system to help remain competitive and offer niche services to customers is fast becoming the norm. The long-term IT strategy involves using a single position management system across time zones, markets, asset classes and customer segments.
This white paper examines the drawbacks of legacy position management systems and explores the benefits of ultra-modern position management components that can offer not just basic services but go beyond. The key consideration is the adoption of a single position management component for all business needs, be it for custody or brokerage and sans any limitations in the form of customer or market segments.
The stress on the word ‘component’ needs to be noted as this article is interspersed with references to position management systems and position management components. The difference in notation is because modern position management systems will need to exist as loosely coupled components which can easily sit in the complex solution map and interact with n number of surrounding systems.
Read the white paper.