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Operations that keep up with the business

We review and redesign the operations of funds and broker-dealers, tie each change to a specific deliverable, and leave the result documented and, where it makes sense, automated.

ForHedge funds, asset managers and broker-dealers
ScopeEvery function outside the investment decision
Starts withA fixed-scope diagnostic or a defined project

Fund and asset manager operations

FunctionWhat we review, build or fixWhat you get
Fund accounting oversightReview of the administrator's NAV, expense accruals and allocations, management and performance fee calculations, and the month-end close calendar.A NAV review checklist, a fee calculation check and a close calendar with owners
Treasury and financingCash and margin management, collateral, financing and securities lending terms, share class hedging and counterparty exposure.A daily cash and margin process and a counterparty exposure report
Investor operationsSubscriptions and redemptions, capital activity, investor reporting, side letter obligations and operational due diligence questionnaires.A side letter register and a maintained due diligence questionnaire library
ValuationPricing sources and hierarchy, hard-to-value positions, the valuation committee and the documentation auditors ask for.A valuation policy, pricing matrix and committee record
Middle officeDaily positions and P&L, independent price checks, reconciliation to the prime broker and the administrator, and the process for resolving differences.An automated reconciliation with an exception log and aging
Trading operationsAllocation, confirmation, give-ups and settlement across executing brokers and the prime broker.A documented order-to-settlement flow with controls at each handoff
Counterparty documentationPrime brokerage, ISDA and credit support, give-up and clearing agreements, and what each one requires of the firm.One register of agreements, key terms and notice obligations
Regulatory reporting operationsThe data behind Form PF, Form 13F, large trader and beneficial ownership filings.Filings produced from the books on a controlled calendar
Management company financeBudget, vendor spend, expense allocation between the fund and the manager, and the cost of the operation.An expense allocation policy and a cost-per-function view

Broker-dealer operations

For agency, institutional and introducing firms.

FunctionWhat we review, build or fixWhat you get
Financial operationsGeneral ledger, net capital computation, FOCUS preparation support, regulatory fees and assessments, and the annual audit with the FINOP.A month-end close checklist and a net capital review process
Commissions and billingCommission schedules, client billing, soft dollar and commission sharing administration, research and vendor payments, and receivables.Automated billing and commission reports with a reconciliation to the ledger
Clearing relationshipClearing agreement terms, daily files, reconciliation to the clearing firm, deposits and fees, and conversion when the relationship changes.A clearing reconciliation and a fee review against the agreement
Registration and licensingForm U4 and U5 processing, continuing education tracking, branch and residential supervisory location records, and annual renewals.A licensing tracker tied to CRD and the supervisory structure
Regulatory and trade reportingConsolidated Audit Trail reporting and error correction, trade reporting, and the reviews that show the data is complete and accurate.An error-rate dashboard and a documented correction workflow
Best execution reviewRegular and rigorous review of execution quality under FINRA Rule 5310.A review template, committee minutes and the data that supports them
Surveillance operationsException queues, alert review, escalation and evidence that each alert was handled.An alert workflow with documented dispositions
Processing and settlementBooking, allocations, DVP and RVP settlement, options give-ups and CMTA, fails and error accounts.A settlement and fails process with an error account policy
Market data and exchange administrationEntitlements, exchange and vendor billing, and the declarations that go with them.An entitlement inventory reconciled to invoices

Across both

Operating model and organization

Who owns each process, what is done in-house and what is outsourced, and whether the team is sized and structured for the next stage of the firm.

Process automation

Allocations, commissions, reconciliations, billing and reporting rebuilt to run on schedule with an audit trail, using the firm's own systems and data.

Data and reporting

One source for trades, positions and P&L, with every management, investor and regulatory report traceable back to it.

Vendors and systems

OMS, EMS, PMS, administrators, archiving, surveillance and market data reviewed for cost, fit and overlap, with selection, contracts and migration support.

Resilience and security

Business continuity, cybersecurity controls, access management and vendor due diligence that hold up when tested.

Transitions

A departing operations lead, a new administrator or clearing firm, a systems conversion, a lift-out or a new product line, planned so nothing drops.

Technology and data

We map the systems the firm runs, what each one costs, and where data is rekeyed between them, then recommend what to keep, consolidate or replace.

LayerWhat it coversWhat we look at
Order and execution managementOMS and EMS, broker connectivity and allocationFit to the strategy, broker coverage and how allocations reach the books
Portfolio and riskPositions, exposure, P&L and risk reportingOne source of positions, and whether risk reports match the books
Accounting and administrationShadow accounting, administrator feeds and the general ledgerFile formats, timing and the reconciliation between them
Investor and client systemsCRM, investor portal and reportingWhether investor data lives in one place and reports come from it
Compliance technologyArchiving, surveillance, personal trading and policy platformsCoverage of every channel the firm uses, and alert quality
Market and reference dataPricing, security master and corporate actionsLicensing cost against use, and data quality at the source
Infrastructure and securityHosting, access management, backups and business continuityWho has access to what, and whether recovery has actually been tested

How an engagement runs

  1. Diagnostic

    A fixed-scope review of the processes in question: how they run today, what they cost in time and risk, and what a fix would take. Sometimes the answer is that the current process is good enough, and we say so.

  2. Design

    The target process, the controls inside it and the systems or automation it needs, agreed with the people who will run it.

  3. Build

    The new workflow, reports and automation, run in parallel with the old process until the results match.

  4. Handover

    Procedures, a runbook and training, so the firm owns the result and does not depend on us to keep it running.

Tell us where the firm is and what comes next

A short note on where the firm is and what it needs is enough to start. We reply within one business day.

Email [email protected]