As reported by WatersTechnology, unprecedented change is pushing the front and middle offices closer together. Sybase’s Sinan Baskan examines the new rules of the road.
Risk management systems have been commonly positioned as part of the middle-office operation because they require integration with front-office trading activities and back-office settlement procedures. However, risk management and regulation have collectively been thrust into key supporting roles within the profit center of the front office. The new trading systems (which continue to evolve daily) are coalescing into a model that compresses the front and middle offices as never before.
Like many of the sea changes happening on Wall Street, the consolidation of the front and middle office stems from the 2008 financial crisis and the tremendous technological advances (ie, unprecedented speed) occurring inside Wall Street trading engines. The result is significant time compression along each and every point of the trading cycle, from pre-trade through execution.