US investment management firm AllianceBernstein has deployed ICE Liquidity Indicators from the exchange group’s data business to help meet regulatory obligations.
ICE Liquidity Indicators will provide the $530 billion asset manager with liquidity modelling techniques through user-defined inputs to simulate liquidity scenarios across fixed income, equity and derivative instruments.
The tool was designed to aid clients optimise investment decision-making, improve portfolio liquidity risk management and comply with the US Securities and Exchange Commission’s (SEC) Liquidity Risk Management Rule, which, for some firms, took effect on 1 December this year. As part of the regulatory requirements, open-end investment management firms must establish liquidity risk management programs to reduce the risk of being unable to meet redemption obligations.
“It is critical that we take all appropriate factors into account when determining compliance with the SEC’s new Liquidity Rule. ICE’s solutions not only enable us to accurately comply with the Rule, but will also enhance our ability to assess opportunities and risks that can impact our current portfolio of investments and our future decision-making process,” said Michael Herskovitz, co-head of operations and technology at AllianceBernstein.
“ICE’s solutions for liquidity risk analysis offer us an increased level of transparency into the opaque fixed income markets. They will support our investment management and risk oversight procedures, and help us maintain compliance with the SEC’s new Liquidity Rule.”
ICE Data Services’ president and chief operating officer, Lynn Martin, added that managing liquidity risk has become increasingly important to the exchange group’s clients.
Last month, AllianceBernstein confirmed that it has made an offer to acquire institutional research provider Autonomous Research. The company said the acquisition would provide Bernstein, the broking arm of AllianceBernstein, with further scale to invest in its research business.