Share page with AddThis

News

JP Morgan/SimCorp partnership tackles operational data problems

Cutting costsJP Morgan Security Services has partnered with SimCorp to increase operational efficiencies around mutual funds.

The firms say they are providing a front-to-middle office integrated custody service for mutual fund clients, and it includes the sharing of operational data.

Market volatility in 2020 put a spotlight on manual processes used by fund managers and the European regulator, Esma, also recorded higher than usual numbers of settlement failures.

There is also a growing demand among asset managers for better access to data and, consequently, more integration and interoperability between their various service providers.

“Timely and agile access to consistent data is essential to fully address some of the key pain points in the buy side,” said Marc Schröter, senior vice president, global product management at SimCorp, who added that Simcorp was “opening up our architecture and creating an open ecosystem” that will facilitate the buy side with more operational flexibility.

Naveen TV, managing director at JP Morgan securities services, said sharing enriched transaction data sets and operational workflows within an open integration would “greatly benefit clients in their quest for efficient and transparent operations”.

SimCorp plans to replicate the JP Morgan partnership with other firms, stating that it is “moving beyond the delivery of front-to-back, multi-asset solutions”, and towards "the creation of an open platform".

A SimCorp spokesperson cited similar partnerships with BNY Mellon and State Street as “growing evidence that open systems are not only far more beneficial than closed systems but also a desired buy-side standard”.

© 2021 fundsTech

Most read features

Roundtable: New age thinking

Our panel of experts discusses the state of innovation in the industry and whether technology and the pandemic have created a once-in-a-generation opportunity to change. Chaired by Nicholas Pratt.

Cryptocurrencies: Solving crypto’s sustainability problem

Cryptocurrencies like bitcoin have a huge carbon footprint but, as Nicholas Pratt discovers, environmentally friendly alternatives exist.

Inside view: Who owns the data?

SteelEye chief executive Matt Smith finds that firms’ increasing use of third parties to store and manage data is creating tricky issues over data ownership.

Proxy voting: Making every vote count

With stewardship more important than ever and digital technology to the fore, surely it is time to solve the problem of proxy voting? Nicholas Pratt investigates.

Interview: Rise of the robo-adviser

FundsTech talks to Nutmeg’s CTO, Matt Gatrell, about the role of technology in its online offering.

Sponsored Profiles

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...

Sponsored profile: A question of trust

AcrobatsAs more firms adopt agile software development practices, Petra Roche of Metrosoft explains why trust is so important in making agility work.

Sponsored feature: Compliance and the case for agility

CheetahFundsTech talks to Janusz Lorenc, CEO of Metrosoft, about asset managers’ approach to compliance risk and the case for agile software development.

Sponsored feature: Outsourced dealing

On_targetFundTech talks to Amundi Services’ Romain Sauvage and Gianluca Minieri about an increased demand for outsourced dealing among fund managers, driven by...