At a critical juncture in the financial sector, where market volatility and burgeoning technological innovation intersect, leaders from both the buy-side and sell-side convened at the SIFMA Operations Conference & Exhibition 2025. The focus of discussions revolved around enhancing collaboration to optimise operational experiences between these two pivotal sectors of finance.
Moderated by Bharat Sawhney, Partner at Sia Partners, the panel titled “Bridging the Gap: Enhancing Sell-Side and Buy-Side Relationships to Optimize the Operations Experience” showcased insights from notable institutions, including US Bank, Fidelity, Goldman Sachs Asset Management, and Nuveen. Their conversations underscored the necessity of operational resilience and the transformative potential of technologies such as artificial intelligence (AI).
The relationship between buy-side and sell-side institutions has assumed unprecedented importance, particularly in the wake of recent market upheavals. Aruna Parthiban, Senior Vice President at Goldman Sachs Asset Management, articulated the current sentiment, stating, “The value you get out of getting the network adoption, getting the voice heard… is vital for us to run our business in a seamless fashion.” This sentiment reflects a broader industry trend toward strengthened cross-institutional partnerships, evidenced by significant initiatives like the smooth transition to T+1 settlements, which was made possible by coordinated efforts across the sector.
The pandemic notably stretched operational capacities, with Eileen Bejasa, Senior Vice President at US Bank, recalling significant strains and outages during its onset. “Now, we’re seeing a mindset shift,” Bejasa said. It’s not merely about stability anymore; the focus is shifting towards generating value through robust infrastructures capable of managing regulatory demands and utilizing data effectively.
Internally, firms are also recognising the need for cohesive collaboration. Laura Jacques, Vice President of Trade Operations at Fidelity, emphasised the importance of breaking down silos within organisations, noting, “We need to bring the conversation together between our front, middle, and back offices—not just when there’s an issue.” This indicates a crucial understanding that a seamless trading experience must be supported by streamlined operational processes.
Panelists identified areas such as syndicated loans and private placements as ripe for innovation, stating that a significant amount of manual documentation persists in these markets. Cinda Whitten, Senior Managing Director at Nuveen, pointed to the ascent of fintechs aimed at automating processes, highlighting the potential to streamline these document-heavy asset classes.
Operational infrastructure has become critical, especially as product innovation accelerates. The shift towards digital assets and sophisticated investment strategies underscores the necessity for modernised systems. Jacques argued for a forward-thinking approach, “Instead of fitting new ideas into old systems, we should ask: What operating model supports that?” This reflects a growing consensus that a unified model is necessary for leveraging advancements in technology.
However, challenges remain in balancing customization with scalability, as noted by Bejasa. She highlighted the tension inherent in delivering tailored solutions while maintaining operational efficiency. “We’re focusing on unified client data and operational consistency,” she explained, stressing the need to think critically about solutions that cater to the buy-side.
AI’s increasing prominence was a key topic during the panel, with Parthiban stating that, while AI is not a novel concept, its application in finance is now more compelling than ever. Firms are experimenting with AI in various operational capacities, including automating mundane tasks and enhancing data analysis capabilities. Jacques acknowledged the current landscape, remarking, “We’re siloed right now… but the industry’s beginning to align around common use cases—reconciliation, onboarding, corporate actions.”
The potential of unstructured data, particularly in relation to syndicated loans, emerged as an area ripe for advancement. Parthiban noted the inefficiencies, such as multiple parties interpreting the same legal documents, suggesting that natural language processing could automate compliance rules and data extraction.
As innovation unfolds, companies like Nuveen are actively experimenting with platforms that unify disparate processes and functions, with the goal of developing autonomous workflows that enhance decision-making efficiency. Whitten shared insights into her firm’s initiatives, including AI-driven summarisation tools to streamline communications and improve workflows.
As the discussion concluded, a consensus emerged: while the integration of AI is still in its infancy, the groundwork for transformational change is firmly being established. Effective collaboration—within firms and across the financial ecosystem—remains a fundamental requirement for fostering innovation and achieving meaningful outcomes.
Parthiban encapsulated this philosophy succinctly, stating, “If you start with the client, and not just the client’s expectations of me or you, but of us, you get a much more meaningful conversation.” The pathway forward depends on unity and cooperation, vital ingredients in an era marked by rapid change and uncertainty.
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Source: Noah Wire Services
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