Hedge Fund Software and Services

Prepare for Growth with Hedge Fund Software

With hedge funds continuing to attract institutional capital, the entire approach to investment strategy and operations is being reshaped. Along with regulators, institutional investors demand high standards of infrastructure and operational integrity. FIS™’ Hedge360, our integrated suite of hedge fund software solutions, helps hedge funds stand up to scrutiny and deliver on innovative strategies.

  • Increase operational efficiency – Rely on hedge fund software to reduce costs, strengthen infrastructure, and support multiple strategies and complex instruments.
  • Enhance risk management – Achieve a unified view of risk, manage regulatory requirements, increase transparency, protect assets and reputation.
  • Support scalability – Prepare for business growth, focus on core strengths and respond to opportunity with multiasset class technology.
  • Customize the platform – Choose from hedge fund software modules and integrate in any combination: portfolio management, portfolio accounting and reporting, investment risk management, risk reporting, convertible bonds, investor accounting, independent valuation, reconciliation, market data, collateral consolidation and optimization.

Collateral Management

Minimize Cost and Maximize Return with Collateral Management Solutions

In an environment in which high-quality collateral is a scarce commodity, it’s essential to establish sound collateralization operations and optimization processes that make the most efficient use of collateral. With the FIS™ Apex collateral management solution suite, it’s possible to manage, trade and optimize collateral across multiple trading book products on a single hedge fund software platform.

  • Minimize the cost of collateral and maximize return assets with hedge fund software that gives you access to numerical optimization algorithms.
  • Gain a universal view of assets across products, asset classes and geographies when you trade directly from our collateral management solution’s real-time global inventory.
  • Efficiently keep track of who collateral is held from and posted with and at what rate.
  • Benefit from tailored, cross-product support for collateral operations, incorporating flexible agreement management and workflows.
  • More fully understand the multidimensional aspects of collateral management risk.

Compliance

Use Compliance Software to Increase Transparency and Mitigate Risk

The regulatory environment is increasingly complex, with stiff consequences for failure to comply. FIS™’ Protegent Surveillance offers a comprehensive suite of compliance software tools to address market manipulation and insider trading concerns. As part of our hedge fund software ecosystem, Protegent increases visibility into market abuse risks and automates monitoring, detection and resolution to mitigate fraud.

  • Holistically identify market manipulation and insider trading concerns, with controls to avert false positives.
  • Effectively and efficiently respond to all regulatory or stakeholder queries using hedge fund and compliance software.
  • Detect changes in trading activity patterns that may be symptomatic of potential abuses.
  • Stay on top of regulatory requirements and industry best practices across asset classes and global regulatory jurisdictions.
Hedge Funds Compliance

Convertible Bonds

Versatile and Innovative Convertible Bond Software

Convertible Bonds

Successfully investing in convertible bonds requires sophisticated analysis throughout the instrument’s life cycle, with deep, rapid, accurate insight into the complexities and risks. Integrated with FIS™’ hedge fund software, our Monis convertible bond software suite supports the full investment life cycle, including convertible bond pricing, market data issuance analysis, trading, valuation, portfolio management and risk management.

  • Turn data into insights on the go with the new mobile app for convertible bond data.
  • Gain efficiency and reduce costs with a single solution that expertly handles the convertible bond pricing, hedging and analysis.
  • Identify market opportunities with powerful convertible bond valuation, analysis and modeling capabilities.

Corporate Actions

Automate the Entire Process with Corporate Actions Software

Corporate actions processing is fraught with complexities from the management of often incomplete data from different sources at different times, through event, position, election and entitlement management – and it must all happen quickly, typically with too few staff. FIS™’ XSP corporate actions software and services help global hedge funds automate end-to-end corporate actions processing.

  • Automate the end-to-end corporate actions processing life cycle with corporate actions software, for straight-through processing that eliminates manual intervention.
  • Reduce the reliance on paper notifications and eliminate the need to rekey data, thus reducing risks and costs.
  • Integrate with hedge fund software to lower infrastructure maintenance and costs.
  • Choose the solution that has earned the SWIFT Certified Application Label for 12 consecutive years, ensuring adherence to SWIFT FIN messages, connectivity and functionality.
Hedge Funds Corporate Actions

Swift Certified Application Corporate Actions


Independent Valuation

Reduce Risk and Ensure Transparency

As derivatives markets face increasing scrutiny, transparency and third-party validation are central to industry reforms, including central clearing of over-the-counter (OTC) derivatives and regulations such as Dodd-Frank, UCITS, FAS 157 and IFRS 7. Part of our hedge fund software ecosystem, FIS™’s FastVal independent valuation service gives you a clear view of the value of your trades and holdings.

  • Gain clarity into valuations for a range of instruments: commodities, convertibles, credit, equities, fixed income, FX and currency, interest rate, inflation, hybrids and structured products.
  • Use our derivatives pricing services to assess the risk of derivatives trades and comply with derivatives regulation.
  • Ensure that complex trades are sufficiently collateralized with OTC derivatives valuation and pricing services.
  • Enable the valuation of complex structured products.
  • Benefit from a full spectrum of volatility data across all assets in a transparent, timely and cost-effective way with the FIS™ FastVal volatility data service.

Market Data

High-quality, Global, Cost-effective Hedge Fund Market Data

Increased regulation and a greater understanding of systemic risk have created a stronger demand for high-quality hedge fund market data. This data has to be verified and accurate, go back further in time, and be stored and accessible for longer periods. Through our hedge fund software ecosystem, FIS™ offers a variety of solution options:

  • Benefit from flexible, cost-effective access to comprehensive, global, real-time and historical hedge fund market data, news and analytics with FIS™’ MarketMap.
  • Monitor securities lending activities – a recognized daily proxy for short interest – to support your long and short trading decisions with FIS™’ Astec Analytics hedge fund market data solution.
  • Gain insights from a full spectrum of volatility data across all assets in a transparent, timely and cost-effective way with the FIS™ FastVal volatility data service.

Partnership and Investor Accounting

Eliminate Complexity, Create Efficiencies and Reduce Risk

As investors become more sophisticated, hedge funds and their administrators require not only transparency but robust hedge fund software platforms that ensure investment accuracy, accountability and compliance. Firms around the world rely on the FIS™ InvesTier solution for hedge fund partnership, investor accounting and reporting to support both U.S. domestic partnerships and offshore, unitized investment corporations.

  • Improve customer service while reducing the cost, complexity and risk associated with the error-prone manual processing of hedge fund partnership, investor accounting and reporting.
  • Gain the ability to configure an unlimited number of user-defined fee calculations, side-pocket allocations, process gates and variable break periods.
  • Take on a greater number of complex funds to help attract more capital investments.
  • Access support for multimanager, multistrategy, multiclass and multiseries funds.
  • Utilize multicurrency double-entry general ledger stores all investment activity with complete audit trail.

Portfolio Accounting and Reporting

Improve Scalability, Transparency and Compliance with Portfolio Accounting Software

Fund managers in this competitive market must account for portfolio transactions across multiple asset classes and currencies, and front-to-back-office operations must be integrated for streamlined workflows. FIS™’ VPM is a hedge fund software solution for all aspects of portfolio accounting, ensuring transparency into data and holdings and providing the foresight needed to adapt trading strategies.

  • Reduce risks associated with manual portfolio accounting entries.
  • Minimize operational risk with integrated hedge fund and portfolio accounting software.
  • Ensure transparency, data integrity and a complete audit trail.
  • Gain easy access to data and portfolio reporting capabilities.
  • More fully comply with regulatory, accounting and corporate governance standards.
  • Eliminate the complexities involved in managing asset classes such as bank debt.
Portfolio Accounting and Reporting

Portfolio Management

Respond to Opportunity, Enable Growth and Create Efficiencies

Portfolio managers face increased operational complexity, with the trend for diversified portfolios intensifying and regulatory change ongoing. Front Arena from FIS™ provides a multiasset, front-to-back portfolio and risk management solution with a powerful order management system built in, enabling traders and portfolio managers to explore a greater range of asset classes and strategies.

  • Traders and portfolio managers can benefit from a robust and highly flexible hedge fund software solution that helps them explore a broad range of asset classes and strategies.
  • Improve transparency, strengthen compliance, contain costs and demonstrate credibility.
  • Invest on behalf of clients with reduced risk and increased confidence, and better manage multiasset-class portfolios.
  • View consolidated positions P&L and risk across asset classes and strategies to the level of individual trades and cash flows.
  • Develop and model strategies in real time and react dynamically to market conditions.
  • Assess the potential impact of orders on the portfolio with pre-deal compliance checks.

Reconciliation

Gain Accuracy and Transparency with Reconciliation Software

As their operations and trading strategies grow more complex, hedge funds need to ensure more accurate, transparent data – not only for regulatory compliance and investor due diligence, but also for improved investment decision making and client reporting. FIS™’ IntelliMatch Operational Control reconciliation software integrates with our hedge fund software to help you better manage reconciliation and system validation while reducing costs and risk.

  • Support automated cash, position, trade, net asset value (NAV) and margin reconciliation, as well as price and security master validation.
  • Automate steps such as file collection, data cleansing and matching, and use workflow for exception management.
  • Ensure rapid resolution of high-risk, high-value issues and provide key indicators of health and operational risk through real-time dashboards, break notification and support for mobile device access.
  • Support end-of-day and intraday validation of trading, accounting and risk data, highlighting differences from associated brokers and administrators.
Hedge Funds Reconciliation SWIFT Certified Application Reconciliation 2017

Risk Management and Reporting

Use Hedge Fund Software to Gain a Unified View of Risk

Risk Management and Reporting

Investment firms have begun to recognize great value in using investment risk management to improve internal investment decision-making as well as satisfy external requirements from regulators and investors. FIS™’ hedge fund software ecosystem includes a multiasset class hedge fund risk management and reporting solution serving buy-side firms globally and a comprehensive risk solution for commodities.

The FIS APT hedge fund risk management solution models market risk and liquidity risk across liquid and illiquid asset classes, with what-if scenario analysis, supported by a range of risk models and stress testing. A fully managed service for automated hedge fund risk reporting is also available.

  • Make risk management an integral part of the overall investment process.
  • Gain greater visibility into enterprisewide risk over a wider range of asset classes.
  • Enhance investment strategy and improve the decision-making process.
  • Pursue more innovative, higher-yielding strategies with greater confidence.

The Kiodex suite, a comprehensive commodity risk solution, combines four key services: independent market data, risk reports, valuation models and deal capture.

  • Offers an independent source of commodity forward curves and volatilities
  • Addresses the challenges of managing operational risk, quantifying market risk and obtaining independent market data

Trading and Connectivity

Respond to Opportunity and Turn Data into Insights

SGN Network integrates with FIS™’ hedge fund software ecosystem to address the hedge fund connectivity challenges of trading in new instruments and venues, shifting investment strategies and regulatory changes. SGN Securities provides market data, order routing and FIX services for hedge funds.

  • Helps increase operational efficiency by automating the entire trade life cycle across a wide range of financial instruments
  • Connects buy- and sell-side firms, as well as exchanges and ECNs, to trading venues
  • Enables you to reach equities and derivatives brokers as well as major dark pools, fixed income desks and algorithmic destinations
  • Provides the audit data necessary to satisfy regulatory requirements

Fox River Execution Solutions provides buy- and sell-side firms with trade execution solutions that help improve execution quality, minimize information leakage and decrease execution costs

  • Helps reduce overall latency in reaching external venues, enabling you to improve fill rates and trade execution price
  • Award-winning Fox River Algorithms blend human logic with precise mathematical formulas, mimicking the experience and knowledge of a skilled trader. Spots skews, detects patterns and opportunities other algorithms don’t look for
  • Fox River Sales Trading manages and executes soft dollar and execution-only equity trades for all types of buy-side U.S. customers. Ensures that no information leakage or conflict of interest occurs
  • Fox River Sponsored Access assists sell-side firms by addressing the challenges of market access, Regulation NMS market access fees and additional latency. Reduces costs over exchange memberships, reduces latency and may help decrease the regulatory and reporting obligations associated with exchange membership
Hedge Funds Trading and Connectivity