Hedge funds face automation challenge
The industry has been trying to remove operational risk from hedge fund transactions by automating the process – with mixed results. Now, some hedge fund administrators are turning to alternatives. Kris Devasabai reports
For an industry that has been so quick to deploy cutting-edge technology in its trading strategies, hedge funds remain crustily old-fashioned when it comes to other parts of the business. Procedures for handling and processing investor subscriptions have barely changed in decades, and are based largely on error-prone manual input.
That may have to change. A host of new rules – from the US Dodd-Frank Act and European Market Infrastructure Regulation, to the US Foreign Account Tax Compliance Act
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