arcesium interview prep Flashcards
Customers
Customers: Arcesium’s primary customers are financial institutions, including hedge funds, private equity firms, asset managers, and banks. These customers rely on Arcesium’s solutions for data integration, investment management, and operational efficiency.
Customer needs
Customer needs: Arcesium’s customers are looking for solutions that help them manage their investments, mitigate risks, and streamline their operations. They require reliable, efficient, and scalable technology to stay competitive in a fast-paced, highly regulated industry.
Industry Trends
Industry trends and challenges: As the financial services industry evolves, it faces challenges such as increased regulation, a growing demand for transparency, and the need to stay ahead of technological advancements. Arcesium must understand these trends and challenges to develop strategies that cater to its customers’ evolving needs.
Competitors
FIS
SS&C Tech
SimCorp
BlackRock Solutions - Aladdin
Effusion
Arcesium - What do you do?
Arcesium has two has two primary lines of business: We’re a global financial technology company and a professional services firm. We build modern enterprise data management foundations using cloud-based technology. Our goal is to create a single source of truth for disparate investment data sets, at an exceptionally large scale. Additionally, we have context-specific business processes and workflow tools, which are typically for post-investment activities. We deliver these various solutions to financial services organizations, commonly hedge funds, banks, institutional asset managers, and increasingly so, private equity firms.
What are swaps?
Periodic planned trading between parts at contractually and formulaically defined price.
A swap is an agreement for a financial exchange in which one of the two parties promises to make, with an established frequency, a series of payments, in exchange for receiving another set of payments from the other party. These flows normally respond to interest payments based on the nominal amount of the swap.
Market - large, liquid, competitive, & important - NOT standardized so no central market
An individual client could, for example, decide to make a swap to exchange the variable payments on a mortgage, which are linked to the Euribor (Euro Interbank Offered Rate), for payments at a fixed interest rate. In this way, the risk of unexpected increases in monthly payments would be averted.
Reconciliation App Overview
Have had recon app for sev years in broader engagements.
PResently offering recon as standalone module to managers toautomate recon while maintaining control & oversight.
modular makes flex to deploy. cloud based. oursourced saas.
recon provides clients with RT transparency into entire workflow
Treasury Suite
Toolkit designed to empower fund mgrs to optimize fund decisions across prime brokers, swap counterpartie s and others. createst transp view of complex margin 7 otehr fincl agreements. lets clients manage exposure, fund sources, supervise CPs, evaluate yield, etc.
Prime Brokers
A prime brokerage is a bundled group of services that investment banks and other financial institutions offer to hedge funds and other large investment clients that need to be able to borrow securities or cash in order to engage in netting to achieve absolute returns.
https://www.investopedia.com/terms/p/primebrokerage.asp#toc-understanding-a-prime-brokerage
What Is Clearing?
KEY TAKEAWAYS
Clearing is the correct and timely transfer of funds to the seller and securities to the buyer.
A specialized organization often acts as an intermediary known as a clearinghouse and assumes the role of tacit buyer and seller to reconcile orders between transacting parties.
Clearing is necessary to match all buy and sell orders to ensure smoother and more efficient markets.
When trades don’t clear, the resulting out trades can cause real monetary losses.
The clearing process protects the parties involved in a transaction by recording the details and validating the availability of funds.
https://www.investopedia.com/terms/c/clearing.asp#:~:text=Clearing%20is%20the%20procedure%20by,and%20securities%20to%20the%20buyer.
JPM Partnership
“Historically, J.P. Morgan only used Arcesium’s technology for itself,” said David Nable, managing director and head of commercial strategy at Arcesium, in an interview. “Now with the bank’s equity stake in the business there will be much more alignment around deploying joint solutions to their massive client base as well.”
Statistical Arbitrage
KEY TAKEAWAYS
Statistical arbitrage is a group of trading strategies employing large, diverse portfolios that are traded on a very short-term basis.
This type of trading strategy assigns stocks a desirability ranking and then constructs a portfolio to reduce risk as much as possible.
Statistical arbitrage is heavily reliant on computer models and analysis and is known as one of the most rigorous approaches to investing.
Key Data Sets
Market - Price, Index, Benchmark
Fundamentals - Fncl statements, Analysts & Earnings, MACRO Economic DATA
Alternative Data - Social Media, Data Miner, Satellite, Trx Data, Etc.
Risk Data - Credit Ratings, MKTG Risk
ESG
UBOR™
Create a consistent source of investment data for use across your organization, reducing the operational complexity and technology overhead associated with maintaining separate investment and accounting books of record.
Reconciliation
Be confident that your data is precise across every asset class, currency, activity type, and dataset, whether structured or unstructured, in any time zone.
