DST acquires State Street’s risk management unit Askari
DST International, the software arm of US investment management services provider DTI Systems, has acquired State Street’s risk management software arm Askari for an undisclosed sum.
The sale by State Street appears to be part of an ongoing effort by the US financial services firm to divest business units that it believes are non-core. Askari, which will be renamed ‘HiRisk’ when it is fully integrated with DST International, was founded by Peter Davies, who quit the company to become vice-chairman of risk analytics provider RiskMetrics last year.DST Systems has had a relationship with State Street for about 30 years and the pair has initiated a multitude of joint projects together. State Street said it would maintain its commitment to use Askari.Eric Reichenberg, president of the former State Street unit who will oversee the Askari side of the integration with DST, told RiskNews the deal should provide a number of new opportunities for the company. These include access to DST’s infrastructure and its 500 clients around the world.
Some market participants view Askari’s business fortunes as languishing. They cite the departure of Davies and Askari’s failure to sign up a major potential partner, Goldman Sachs Asset Management, last year as two areas of concern. But Askari currently has about 18 clients, and, importantly, has signed up Swedish pension fund AP2, Lazard Freres in New York and regional US brokerage Ryan Beck, in the past few months.
DST International offers a suite of front-to-back office services to fund managers, including accounting, order management and compliance, but lacked a risk management component. The Askari purchase should fill in this gap.
Askari employs about 40 staff. Two are expected to leave following the sale. Staff at Askari's offices in Boston, London and Singapore will relocate to DST's offices and risk software staff may also be posted to DST offices in New York and Paris.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Technology
Dismantling the zeal and the hype: the real GenAI use cases in risk management
Chartis explores the advantages and drawbacks of GenAI applications in risk management – firmly within the well-established and continuously evolving AI landscape
Chartis RiskTech100® 2024
The latest iteration of the Chartis RiskTech100®, a comprehensive independent study of the world’s major players in risk and compliance technology, is acknowledged as the go-to for clear, accurate analysis of the risk technology marketplace. With its…
T+1: complacency before the storm?
This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms
Empowering risk management with AI
This webinar explores how artificial intelligence (AI) can strip out the overheads and effort of rapidly modelling, monitoring and mitigating risk
Core-Payments for business leaders: why real-time access to payment data is key to long‑term business success
Business leaders require easy access to timely, reliable and complete information across post-trade processes. Aside from the usual requirements of senior managers to optimise for risk, revenues and costs, they increasingly need to demonstrate to their…
Risk applications and the cloud: driving better value and performance from key risk management architecture
Today's financial services organisations are increasingly looking to move their financial risk management applications to the cloud. But, according to a recent survey by Risk.net and SS&C Algorithmics, many risk professionals believe there is room for…
Machine learning models: the validation challenge
Machine learning models are seeing increasing demand across the capital markets spectrum. But how can firms improve their chances of gaining internal and regulatory approval for these type of models?
Most read
- Top 10 operational risks for 2024
- Regulators’ FRTB estimates based on faulty premise – industry study
- Top 10 op risks: AI fears drive cyber risk to record high