Variable market conditions impact firms in more ways than performance alone. In addition to investment opportunities, unstable market conditions can help firms identify needs and determine project priorities.
During periods of increased volatility and volumes, teams need to focus on daily functions that ensure risks are mitigated. These daily functions include being diligent in processes like:
Here at Theorem, we recognize the importance of having back-office teams keep processes operating during these periods (particularly when they coincide with summer holiday schedules), but these same teams must keep track of processes that exhibit tension, too. When time permits, these teams should “circle back”, address, and improve resiliency. Ultimately, stress scenarios help identify weak processes that need to be re-designed.
Once teams have identified their weakest processes, we commonly hear next, “when is the right time to invest (from a human capital and technology perspective)?” Although there may never be an ideal time, we echo the sentiment seen commonly in public discourse as of late – bear markets and economic downturns are great times to “put our heads down and build”.
For middle to back-office trading ops teams, building means taking a closer look at the following processes:
Firms should use times like these to assess weaknesses and take corrective actions to implement solutions that’ll better position them to manage future volumes and volatility. In fact, Theorem will be using this time to make significant updates to our platform to better support the needs of our clients. More details of our plan will be shared on this in the coming months. In the meantime, we look forward to working with you toward your goals, and as always, don’t hesitate to get in touch to learn more.
Schedule some time with us to discuss this insight further or learn about the ways in which Theorem can help elevate your post-trade processes.
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