Pershing Releases Technology Outsourcing Guide to Improve Business the Strength, Safety and Scalability

JERSEY CITY, N.J., — Pershing LLC, a BNY Mellon company, announced the availability of A Guide to Technology Outsourcing for Hedge Funds. The company’s latest guidebook examines the trends in outsourcing as technology has become a strategically important differentiator for hedge funds. It provides hedge fund managers with best practices for selecting and managing technology partners to develop a reliable and scalable infrastructure while allowing them to still focus on their core money management competencies.

“As hedge funds confront the need to diversify counterparty risk and build a more robust infrastructure, outsourcing to multiple technology vendors can be an efficient, cost effective approach,” said Craig Messinger, managing director at Pershing Prime Services. “With the number of technology providers increasing, prime brokers are a valuable resource that can provide guidance and well-vetted referrals to help hedge funds select solutions that will enhance their technology strategy.”

Developed with EzeCastle Integration and available through Pershing Prime Services, A Guide to Technology Outsourcing for Hedge Funds explores the increased demand for technology outsourcing solutions among hedge funds and how it is driving investors’ growing desire for more secure, robust and reliable infrastructure. The guidebook provides practical advice for selecting an information technology (IT) outsourcing provider, includes processes for developing a Request for Proposal (RFP) and highlights the developments in outsourcing impacting large and small funds. It also focuses on the variety of ways offsite solutions, such as cloud computing and colocation, are effective in controlling or even reducing technology costs.

“The constantly evolving technology landscape and recognition of technology as a competitive differentiator have fueled the growth of outsourcing and the adoption of fully managed IT services,” said Bob Guilbert, managing director, Eze Castle Integration, “When selecting an IT outsourcing solution, it is important that hedge funds focus on finding the right fit and the right partners, as technology can yield significant advantages and improve their overall business model.”

Best Practices from the guidebook include:

  • Finding A Competitive Advantage — Confidence in a firm’s strength and stability has become a strong competitive differentiator among hedge funds as institutional investors remain cautious about counterparty risk. A careful vendor selection process that acknowledges the increasingly strategic role of technology can help hedge funds of all sizes approach investors with transparent processes and robust disaster recovery and business continuity programs.
  • Controlling Expenses Through Outsourced Solutions — The complexity of the hedge fund industry and rising tide of regulation require a greater depth of expertise. Rather than taking on the responsibility of recruiting and managing new hires, hedge funds can use outsourcing to gain instant access to highly trained, experienced technical personnel. An outsourcing partner can also offer on-demand access to specialists with the right experience at a far better price than a large, in-house department.
  • Identifying an Appropriate Pricing Model — Technology vendors offer several different models that can vary from block contracts to service contracts to per-user-per-month arrangements. Hedge funds must carefully consider how well each pricing structure will meet its daily operational needs.
  • Do Not Expect a One Size Fits All Solution — A fund is unlikely to find one provider that meets all of its requirements. Furthermore, relying on a single-vendor solution can potentially increase the exposure to business risks, ranging from a security breach of their lone source of data to regional disasters such as flooding or power outages. An integrator or prime broker can help manage the selection process by helping to both identify scalable solutions based on business needs and vendors that have a deep understanding of the industry and regulatory environment.

To download a copy of the report, please visit

Pershing Prime Services delivers an unconflicted, comprehensive suite of global prime brokerage solutions. This includes extensive access to securities lending, dedicated client service, robust technology and reporting tools, worldwide execution and order management capabilities, a broad array of cash management products and the integrated platform of BNY Mellon. Pershing Prime Services is a service of Pershing LLC. Additional information is available at

Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent more than five million active investors. Located in 21 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Börse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $26.3 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at and through Twitter @bnymellon.