Stephanie Farrell is Head of Integrated Trading Solutions, Americas at Northern Trust Capital Markets.

What were the key theme(s) for your business in 2023?

The challenges of 2023 – ranging from bond and equity market volatility to evolving regulation and the increased costs of maintaining platforms – prompted asset managers to review and enhance their operating models across technology, operations, and investment approach in order to evolve.

The confirmation of a May 2024 deadline for T+1 settlement in the U.S. added urgency for firms as they decide how to manage an additional layer of middle and back-office complexity, putting increased strain on operations across the globe. Firms are exploring increased staffing needs, updates to technology, and redesign of internal processes to contend with the tightened settlement cycle – further driving the need for an enhanced global operating model.

What was the highlight of 2023?

Firms continue to turn to Northern Trust in order to access our broad set of solutions across the front, middle, and back-office. We have experienced tremendous growth in Integrated Trading Solutions, with firms leveraging our 24/6 trading desk and settlement across asset classes. At Northern Capital Markets, we saw significant growth in both fixed income and options trading.

What are your expectations for 2024?

We believe 2024 will continue to be a challenging year for asset managers. Performance remains at the forefront as firms contend with increased volatility, market uncertainty and rising interest rates. Many firms are focused on existing strategies, where others have prioritized growth and desire to launch new strategies and asset classes. These growth initiatives will need to be managed alongside cost cutting initiatives while ensuring that platforms and resources are optimized to be able to support the evolving needs.

We look forward to another year of offering long-term solutions that allow firms to better optimize for the future by becoming more efficient and flexible to support future growth.