Key Takeaways
- • Northern Trust Hedge Fund Services (NTHFS) has expanded its Omnium platform to support energy and physical commodities, including spots, forwards, futures and physical contracts, according to a Business Wire announcement.
- • The enhancement provides a unified investment book of record and accounting book of record across public markets, private markets and commodities for clients trading across multiple markets and regions.
- • NTHFS says the offering addresses a service gap in physical commodity settlements, which can involve physical delivery obligations across multiple time horizons alongside financial implications.
- • Squarepoint Capital is cited as a client, with its Head of Operations describing NTHFS as an instrumental partner as its trading support needs evolve.
Summary
Northern Trust (Nasdaq: NTRS) announced that Northern Trust Hedge Fund Services (NTHFS) has enhanced its platform to support asset managers trading spots, forwards, futures and physical contracts in energy and physical commodities. According to the company, the addition allows NTHFS to serve clients active in these products across multiple markets and regions, while providing a unified investment book of record and accounting book of record spanning public markets, private markets and commodities.
The announcement frames the move as a response to asset managers seeking to generate alpha in developing asset classes and to track risk more effectively. Jeff Boyd, Head of Northern Trust Hedge Fund Services, Americas, said hedge fund managers are eager to invest in energy and physical commodities but that a gap exists in servicing these products, where settlements can involve physical delivery obligations on multiple time horizons as well as financial implications. He said the firm worked with clients to build hands-on service, expertise and data transparency.
The new offering will be available through Omnium, Northern Trust's integrated middle office and accounting platform, which supports a range of asset classes and investment vehicles. It complements Omnium's customizable web-based dashboards. Christopher Newman, Head of Operations at Squarepoint Capital, said NTHFS has been an instrumental partner as the firm's trading support needs have evolved while scaling and entering new markets. Nadia Cobalovic, co-Chief Operating Officer of NTHFS, said expanding into commodities reflects the unit's ability to adapt and support clients exploring alpha-generating opportunities.
NTHFS provides integrated middle and back-office administration to alternative fund managers and institutional investors. Northern Trust reported assets under custody/administration of US$16.6 trillion and assets under management of US$1.5 trillion as of June 30, 2024.
The announcement frames the move as a response to asset managers seeking to generate alpha in developing asset classes and to track risk more effectively. Jeff Boyd, Head of Northern Trust Hedge Fund Services, Americas, said hedge fund managers are eager to invest in energy and physical commodities but that a gap exists in servicing these products, where settlements can involve physical delivery obligations on multiple time horizons as well as financial implications. He said the firm worked with clients to build hands-on service, expertise and data transparency.
The new offering will be available through Omnium, Northern Trust's integrated middle office and accounting platform, which supports a range of asset classes and investment vehicles. It complements Omnium's customizable web-based dashboards. Christopher Newman, Head of Operations at Squarepoint Capital, said NTHFS has been an instrumental partner as the firm's trading support needs have evolved while scaling and entering new markets. Nadia Cobalovic, co-Chief Operating Officer of NTHFS, said expanding into commodities reflects the unit's ability to adapt and support clients exploring alpha-generating opportunities.
NTHFS provides integrated middle and back-office administration to alternative fund managers and institutional investors. Northern Trust reported assets under custody/administration of US$16.6 trillion and assets under management of US$1.5 trillion as of June 30, 2024.
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