Apr 06, 2021

Overview

The client is a vendor in post-trade technology and services that offers sophisticated solutions for the most complex post-trade challenges facing asset managers. It was launched in 2015 and has grown to support more than USD 65 billion in assets from several leading hedge funds, with a staff of over 700 software engineering, accounting, operations, and treasury professionals.

The vendor had an integrated post-trade offering as well as modular product offerings to better support reconciliations, treasury management, data management and warehousing needs, and swaps processing. The product suite had been built with hedge funds in view. However, the client wanted to expand its client base more broadly to buy-side asset managers and asset owners.

The vendor engaged Cutter Associates to provide advisory services related to the development of these product modules, as well as the integrated platform offering, and the market dynamics influencing the buying habits of prospective clients within its target market.

Cutter Solution

Cutter began by interviewing key employees from product engineering, marketing, sales, client and corporate communications, operations, and senior management. We then held in-depth discussions with the core development teams and product owners of each of the modular offerings to get a better understanding of the depth of functionality available in each module, the integration points, as well as the value statements.

Cutter compared the vendor’s offerings with competing products, using our research and consulting experience in the following areas:

  • Data management
  • Order management and trade processing
  • Reconciliation
  • Derivatives management
  • Collateral management

Cutter also analyzed competitors by the following different categories:

  • Bundled vendor solutions
  • Best-of-breed vendor solutions serving the broad market
  • Niche solutions

Cutter also analyzed how the vendor’s solution would appeal to each client segment, such as asset managers and asset owners, including pension funds, sovereigns, insurance firms, etc.

Finally, Cutter analyzed the weaknesses in each of the product modules, as well as the integrated product and came up with targeted recommendations for improvement.

Within a relatively short span of time and limited budget, our client was able to get a good perspective on the needs of asset managers and asset owners, and the competitive landscape for each of the product modules and its integrated offering.

The client also received targeted recommendations for product improvements, with priorities. Additionally, there were recommendations on specific client segments to focus on for each of the product modules and the integrated offering.