Tackling the 6 greatest challenges of IBOR

InvestingThe “Investment Book of Record” (IBOR) is a powerful tool that bridges the gap between Portfolio Management/Order Management Systems and the T+1 Accounting Book of Record.

Due to the increased volume and complexity of investment products and the global nature of the business, many asset managers are now adopting IBOR as a data tool. While its benefits are vast, the strategic and tactical challenges are many.

A panel of experts from Beacon Consulting Group, State Street, Eagle Investment Systems, Citigroup and SunGard recently addressed the challenges and best practices for incorporating IBOR during a Broadridge-sponsored NICSA seminar.

The key piece is a business appetite for using IBOR. After a firm decides to adopt IBOR, determining the future state and how to achieve it from an operational and technological perspective – buy versus build — comes next.

The experts say that tackling the following 6 challenges can pave the way to success:

  1. Resources – Ensure the right resources are available, including subject matter expertise in how data is used. Include the views of all stakeholders in the process.
  2. System requirements – Upstream and downstream systems have different requirements. Consider both data and timing. A lot of hand-holding is required!
  3. Data needs – Consider who is consuming the data currently produced under legacy systems and perform due diligence to fully understand data needs.
  4. Change management – Look at the opportunity to transform the business by considering the by-products of IBOR: risk/exposure management, measurement, etc. Work with third-party solution providers to manage the changeover. Set realistic expectations early.
  5. Data management – Ensure that data is complete and accurate. Getting out in front of the change is key to ensuring that time to market isn’t negatively affected. Perform checks and balances before releasing data. Requires senior management sponsorship!
  6. Information delivery – Proactively seek to understand end-clients’ reporting requirements, including the data positions needed and the required format (hard copy, Excel, system etc.).

As the traditional view of data in the industry changes in response to an expanding global marketplace, IBOR is taking a central role as a single touch point for data feeds. As more firms seek to use this tool, they can learn from other firms that have already tackled some of these challenges.

Have you incorporated IBOR in your business?

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