Alternatives technology firm Arcesium has been selected by UK hedge fund Broad Reach Investment Management to automate its treasury operations.
The hedge fund will utilise Arcesium’s modular Treasury suite to scale its treasury management functions, while also bringing transparency and control into its collateral management workflows.
Broad Reach would be able to further optimise their multi-asset collateral allocation through advanced margin replication and simulation capabilities from Arcesium’s technology solutions.
“We were looking to amplify our treasury operations through scalable technology and we could not have chosen a better time to leverage Arcesium’s Treasury Suite,” said Eddie Steel, chief operating officer, Broad Reach Investment Management.
“Their technology supports our processes in a scalable way across all asset classes. Our investment in this engagement has already yielded positive results, and we look forward to further enriching our partnership with Arcesium.”
Hedge funds have seen costs mount and operational complexities rise within their treasury departments. The impact of COVID-19 and the major rise in margin calls at the height of the volatility last March has further heightened the need for automated technology solutions.
According to a white paper from Northern Trust and Hazeltree last year, the treasury teams within hedge funds and alternative asset managers will see their role grow in importance following the dramatic increase in workload caused by the pandemic.
It also revealed the crisis would most likely give the treasury departments among hedge funds greater significance to tightly monitor liquidity and exposure, as well as managing counterparty relationships and cash balances securely.
The announcement follows Arcesium’s recent expansion into Europe, where it announced a new London-based office and the hire of Chris Barrow as head of business development for Europe.
“We are delighted to welcome Broad Reach to Arcesium’s expanding community of clients in Europe,” said David Nable, head of client and partner development at Arcesium. “They are a model example of a multi-asset manager with a sophisticated treasury program that our platform aims to empower.”