When T. Rowe Price rolled out a system from Portware this month, it was noted as a good example of how to integrate an order management systems into an execution system across a far-flung global enterprise. It's also an example of how the back office is rising in importance and how more firms would be wise to find ways to integrate the front, middle and back offices, suggests the Financial Times.

Certainly, more trading firms are considering systems that can "knit together" traditional front-office operations with the valuation, compliance and other middle- and back-office functions "that previously would have been something of an afterthought." STP makes this possible.

The big benefits here are enhanced disclosure and better risk management, two of the biggest buzz words in the post-financial crash era. A great symbol of all the issues at play is the Flash Crash and the subsequent move by the SEC to set up a grand audit trail system.

Some think it is something of a pipe dream. But it makes sense to think about a system at individual companies that can capture the front-office information--the basics of the trade--in a consistent way, no matter what the venue, and then document it for clearing and other purposes--as well as analyze its effect in the context of all other trades.

For more:
- here's the article

Related Articles:
Regulatory issues keeping clouds out of front and back office
Hedge funds face back office challenges
Dodd-Frank sears through Wall Street banks; IT hiring to spike
Haves and have nots in hedge fund tech