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Netik Addresses Operational Risk and Efficiency for Buy Side Firms

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As businesses recover from the financial crisis the necessity for increased transparency, greater risk management and improved reporting saw increased interest in data and data management. Yet 2009 saw operations, IT and data management budgets severely cut with more than one client’s budget being restricted by 60%.

Netik recognises the importance of higher quality data for its clients and has met the challenge to ‘do more with less’ by offering its clients reference and market data managed services as well as software. This enables clients to improve quality of data at a reduced cost and retain local control while leveraging the Netik utility.

“This has been an extremely successful solution whereby Netik has added two major North American clients, a leading dark pool and a major west coast asset management firm, to the growing number of Netik GSM customers. We are pleased that Netik is able to meet our clients’ need to improve their reference data management capabilities whilst also retaining control of their data. In addition to this Netik is having continued success in the asset servicing data warehousing, business intelligence and interactive client reporting portal market, recently signing a significant middle east stock exchange to the Netik InterView platform” says John Wise, chief executive officer of Netik. “Despite the events of 2009, Netik has had a successful year.”

As focus shifts to what 2010 has to offer, Netik recognises that an increase in budgets is unlikely, and the challenge will be how to maintain doing more with less. Netik is confident that its unique hybrid approach of managed service to improve data quality at lower costs, combined with the local control of on site ‘container’ technology will ensure its clients are able to continue improving their data management standards.

Following the financial crisis and Madoff, Netik is expecting regulation to push clients to reduce operational risk by having a reputable third party administrator to undertake fund accounting, investment accounting and custody. Netik is assisting clients in the consolidation, management and reporting of data received from outsourcers, fund administrators, custodians and prime brokers and has a number of top tier firms leveraging its Netik InterView technology in the middle office. In 2010 Netik will be launching a high packaged version of these tools to specifically satisfy the needs of the buy side firms with outsourcing functions in place or in mind.

Wise continues: “Outsourcing accounting in the early 2000s was driven by operational cost and efficiencies; today, it is driven by operational risk and is seen as best practice by institutional owners (if you want to attract institutional money then think outsourcing accounting). This trend means that buy side firms lose their primary source of data in the accounting system to the outsourcer and as a result will need to purchase a local data store (such as Netik InterView) to hold their own copy of the outsourced data – Netik has this technology today.”

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