Paladyne Systems, a provider of operational technology to hedge funds, has formed an alliance with Credit Suisse to deliver a hosted front-to-back office service on an ASP basis to support hedge funds using multiple prime brokers.
“Our strategy is to meet both the current and emerging needs of the hedge fund industry,” explains Phil Vasan, Managing Director and Head of Prime Services at Credit Suisse. “Paladyne’s fully-hosted technology solution will enable Credit Suisse to provide our clients the first `out of the box’ technology platform that integrates front, middle and back office capabilities.”
In essence, Credit Suisse and Paladyne are offering hedge funds an outsourced operational and technology service that does not tie them to Credit Suisse as their sole or primary prime broker. Through it, Credit Suisse clients can access both the Paladyne technology platform and the existing Credit Suisse infrastructure. In addition, Credit Suisse believes the alliance with Paladyne will help it meet the growing demand for outsourced middle and back office services to hedge funds.
“This unique offering solves a number of business issues facing today’s hedge funds,” says Sameer Shalaby, Chief Executive Officer of Paladyne Systems. “Many hedge funds perceive they are locked into a single prime broker relationship due to technology. The Credit Suisse-Paladyne solution frees them to be truly independent of any one prime broker. And importantly they will be able to utilize a best of breed technology solution at minimal cost and risk.”
Paladyne and Credit Suisse are currently integrating Paladyne’s multi-asset order routing tools to direct orders to any client-specific counterparty or to Credit Suisse’s existing trading and execution platforms.
Paladyne is already ervicing clients on its hosted technology platform and expects to incorporate its offering with Credit Suisse Prime Services later this year. Its platform offers order management and allocation, portfolio management, real-time P&L, and strategy-based performance tracking; portfolio analytics, data aggregation, and custom reporting tools; centralized terms and conditions repository and distribution engine with real-time updates and corporate action alerts; automated collection, storage, and analysis of prices and market data from any third-party sources; client relationship management, including website integration and reporting; portfolio accounting, including general ledger reporting, performance measurement, and portfolio reporting.
This joint solution is unprecedented in the hedge fund marketplace, and can be expected to reinforce the trend to multiple prime brokerage.