Whilst middle office is widely accepted to be the function of investment banking or funds management that manages the link between front and back there is divided opinion as to its place in overall operations. Is it more closely aligned with front or back? And what is its main purpose? It is a grey area with constantly changing boundaries.
If you look at more mature “front office” markets such as London, New York & Hong Kong, it is commonly accepted that risk management and technology forms part of the overall middle office function. In Ireland, Middle Office can generally be considered an oversight or support function to these “front office” markets. The key functions include Investment Operations, Trade Support & Processing, Settlements & Treasury Operations and work across Derivatives, Futures & Options, Equities, Fixed Income and FX.
There is a common trend for investment managers to outsource operations and risk functions to third-party providers and focus on revenue-generating activities. On the back of this, fund service providers have increased their middle office product offering and have been successful in developing fund oversight, risk, regulatory and client reporting products to investment managers. This has provided excellent opportunities for people with strong skills in middle office, funds, risk and client management along with excellent exposure to asset classes such as Derivatives, Equities and Fixed Income.
This area will continue to expand and with the integration and advancement of technology and data-driven activity, we will see quite a varying degree of middle office functions move from those more traditional jobs to more technology driven jobs.
If you are a middle office or funds professional looking for new and exciting opportunities within please get in touch for a confidential discussion on 01 539 0610 or email firstname.lastname@example.org.