State Street Corporation has launched an Open Protocol Enabling Risk Aggregation (OPERA)-compliant reporting solution for hedge fund manager and institutional investor clients.
OPERA is a template, or protocol, that standardizes the methods of collection, collation and conveyance of risk information by hedge funds. It was developed by a working group made up of a number of industry participants and released in August 2011 with the aim of aligning transparency reporting formats and methodologies.
State Streets OPERA solution is integrated with the firms risk management platform TruView.
State Street is committed to developing solutions that address the evolving needs of sophisticated asset managers, says George Sullivan, executive vice president and global head of Alternative Investment Solutions at State Street. Our OPERA-compliant reporting solution reduces the need for hedge fund managers to produce data in multiple formats, enabling efficiency in risk transparency disclosures.
State Street says its new solution defines consistent practices, including common principles, metrics and language, to facilitate better understanding and aggregation of hedge fund risk information.
This new and innovative solution complements our comprehensive suite of transparency reporting services for hedge funds, says Patrick Centanni, executive vice president and head of Global Product Management at State Street. We expect our OPERA-compliant reporting solution will help investors better understand their hedge fund investments and proactively manage their risks.
Leading fund administrator Citco in January added a service to its platform to produce OPERA reports for clients.
Open Protocol is expected to be used by regulators to measure and monitor systematic risks in the hedge fund industry; investors to better understand their hedge fund investments and to proactively manage their risks; and hedge fund managers to improve their communications with investors and attract more stable institutional investors, the OPERA working group says.
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