Front-office restructuring is often triggered by the need to upgrade or replace existing technology. The latest systems now provide automated trade capture with minimal manual entry, real-time risk analysis and compliance capabilities.
Vendors continue to develop new features. One example is the capability to combine front-office portfolio reporting with back-office accounting data in real time to produce an investment book of record (IBOR).
An IBOR can eliminate many problems associated with an accounting-based data architecture. It also offers a central aggregation point for users to view any type of data, for any instrument, at any time.
Front-office software also now offers good scalability. This includes the capability to handle multi-location, multi-jurisdiction portfolios. Many managers have used this technology in recent years as a springboard for diversified international growth.