ISSUE045 - Securities Lending Times

MikeFrazierendured in the past from buying dedicated hardwareand software.Second advantage is the time to market; withour solutions it is simply creating a dedicatedenvironment for your company in the cloud. Forexample, with the global inventory managementmodule, we create the environment for the clientand connect their inventory feeds throughan API. The client can then start using the moduleto document locates that will in turn producereports for compliance and management.Another advantage with cloud computing youare able to free up valuable IT resources frommaintaining hardware and software directly relatedto the product. These IT resources cannow concentrate on higher priorities within thecompany - an example of an indirect cost savingsthat impact the bottom line.SLT: Are there any security concerns?Frazier: Security is a key factor of ours, it alwayshas been and it always will be. Over the last fiveyears, though, security within cloud computinghas developed so that it now simulates the securityfeatures that users have come accustomed towithin their company’s LANs and WANs.SLT: Can you tell me a little aboutthe securities lending team youhave at Tullip Tree?Frazier: We have a pretty talented group withyears of experience in the financial industryfocusing on operations, execution, trading andtechnology. I’ve worked in the industry for over12 years, on the operation and technologysides of the house.SLT: Where do you expect your clientsto come from? Are your teambringing them along from their previousroles, are you getting firmsthat haven’t historically dabbled insecurities lending, or are you gettingexperienced clients who areconfident about running their businessrelatively independently?Frazier: This product can be used by both smallerand more established firms and we’re marketingto all participants in the industry. However, itdoes depend on the overall market. If we had asudden upturn in the market, firms might be lesslikely to change and keep with the status quo.But in the current climate, firms are looking forefficiency and looking to improve their processesfor when the market does turn around.SLT: How do you see the next 12-18months developing?Frazier: No question, we’re experiencing uncertaintywithin the securities lending market. Low30levels will remain until the euro markets sortthemselves out and rates rebound. We’ll seesome companies looking to invest in the futureby cutting costs and positioning themselvesfor growth.For us, we’re going to concentrate on thesecurities lending industry and provide customerswith alternative solutions to meettheir needs. SLTMike FrazierManaging partnerTullip Tree Advisorswww.securitieslendingtimes.com