Facing calls for greater transparency, hedge funds are expected to increase their outsourcing of back- and middle-office systems, and Citigroup is offering its services.
The financial services giant has launched a middle-office outsourcing business for hedge funds. The new business will provide daily reconciliation, trade processing, profit and loss reporting, derivatives confirmation and valuation, collateral management, corporate actions processing and cash management for a variety of asset classes and market. Hedge funds can use the Citi middle-office service on its own, or as part of Citi’s whole suite of hedge fund services, including administration, custody and prime brokerage.
At least one hedge fund has already outsourced its middle-office to Citi, according to Hedge Funds Review magazine.