Risk management and compliance for hedge funds migrate to the front office

Front office gains in stature

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Calls for improved risk management and effective pre-trade compliance checks have resulted in major changes in how hedge funds are run and the technology they use.

The middle office, traditionally home to risk management technology and compliance, has seen a fundamental shift in its operations into the front office. “The Madoff scandal and the collapse of Lehman traumatised the whole industry,” says Liam Huxley, CEO at specialist financial software provider Syncova. “The front office was shocked