Dodd Frank’s Impact on Hedge Fund Information Technology

Dodd Frank’s Impact on Hedge Fund Information Technology

The Dodd-Frank reform law will impact almost every business in financial services. “The trick will be leveraging existing systems and rationalizing data across the business to meet strict compliance demands while keeping costs in check,” according to an article in Wall Street and Technology.

The article predicts that new regulations will increase the costs of doing business. The real the challenge for IT will be to comply with Dodd-Frank’s various rules as efficiently and cost effectively as possible. Hedge funds and financial firms have been using IT for data management and risk analytics for years, the trick will be to refine the tools and processes that a firm already has and make them work for compliance.

As firms try to become compliant while doing more with less, they will have to shift more of their technology budgets to mandatory projects as opposed to discretionary projects. Firms might also look into new technologies that will allow them to improve business processes, meet budget requirements and comply with Dodd-Frank at the same time.

Executives should not expect that a single expertise or technology will help their firms meet compliance demands, since each organization will need to approach Dodd-Frank quite differently. “Since Dodd-Frank collectively requires extensive reporting to improve transparency across many business units, compliance will be achieved only with a combination of data management, risk analytics and data rationalization,” the Wall Street and Technology article says.  Additionally, the article adds that firms must become more intelligent about how they consume data.

A knowledgeable technical adviser or trusted virtual CIO can help hedge funds and financial firms identify the technologies that can help them get a handle on their data while meeting compliance regulations.

Contact ACE IT Solutions at 908-704-0400 or at to learn more about Dodd-Frank’s impact on your firm’s technology and how our solutions can bring your firm into compliance.

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Read more at Wall Street & Technology