The investment management world is confused. What is an IBOR, an ABOR or a TBOR? Consultants and marketers have latched on to these acronyms and are drumming up business whether it be for products or services. The Investment book of record, Accounting book of record and the Trading book of record is what I'm referring to.
The money managers of the world need to forget about these acronyms and worry more about their transactions/positions and the processes surrounding the data which will make them successful or at a minimum reduce their risk. What is the requirement? A single view of your data from the front to back as close to real time as possible.
Too many folks that I speak to are more hung up on what an IBOR is and why it matters versus what makes sense for their organization. Forget about the acronyms, decide what you want to accomplish and either buy or build a system that accomplishes the goal.
In my view, a consolidated accounting book that is the investment book and can be updated intra day provides you with what you need. If you can view the positions and related data for your organization from the front to the back office intraday -- you are doing well. Of course interfacing capabilities need to be strong so you can work with other systems as well as reconciliation capabilities whether internal to an organization or with external parties like custodians. Processing of the various pieces that need to happen also need to be taken care of so you have NAVs, accounting figures, etc across time zones updated since there are multiple end of days if you're global.
Are there many systems out there that can deliver? Yes and No - there are some, not many. Is the cost worth it? Depends on your size and needs. Build vs Buy? Buy from a referenced vendor that won't nickel and dime you if your size requires it. If you are small you could use Excel and other hosted low cost tools to fit the bill till you hit the tipping point.
Forget about the acronyms and worry about the transactions, the positions, the processes and the results. Get your single version of the truth -- real time -- so you can avoid the risks introduced by latency and know where you stand at all times.
The money managers of the world need to forget about these acronyms and worry more about their transactions/positions and the processes surrounding the data which will make them successful or at a minimum reduce their risk. What is the requirement? A single view of your data from the front to back as close to real time as possible.
Too many folks that I speak to are more hung up on what an IBOR is and why it matters versus what makes sense for their organization. Forget about the acronyms, decide what you want to accomplish and either buy or build a system that accomplishes the goal.
In my view, a consolidated accounting book that is the investment book and can be updated intra day provides you with what you need. If you can view the positions and related data for your organization from the front to the back office intraday -- you are doing well. Of course interfacing capabilities need to be strong so you can work with other systems as well as reconciliation capabilities whether internal to an organization or with external parties like custodians. Processing of the various pieces that need to happen also need to be taken care of so you have NAVs, accounting figures, etc across time zones updated since there are multiple end of days if you're global.
Are there many systems out there that can deliver? Yes and No - there are some, not many. Is the cost worth it? Depends on your size and needs. Build vs Buy? Buy from a referenced vendor that won't nickel and dime you if your size requires it. If you are small you could use Excel and other hosted low cost tools to fit the bill till you hit the tipping point.
Forget about the acronyms and worry about the transactions, the positions, the processes and the results. Get your single version of the truth -- real time -- so you can avoid the risks introduced by latency and know where you stand at all times.
