IQ-EQ, a global investor services group, has expanded its middle office services to continental Europe and the UK. This move aims to meet the increasing demand from asset managers preparing for changes to settlement cycles and seeking to reduce staffing costs. 

Announced on Thursday 13 February 2025, the firm has introduced a suite of middle office services, including outsourcing, co-sourcing and advisory services. These offerings cover all stages of fund management, from launch to wind-down, specifically catering to liquid hedge funds. IQ-EQ stated that its outsourced solutions allow investment managers to implement an institutional trading architecture from the outset, enabling them to focus on capital raising and investment decision-making.

This expansion follows nearly two decades of middle office service operations in the United States and builds on the firm’s existing presence in the market. It also coincides with the US Securities and Exchange Commission’s move to a T+1 trade settlement cycle. 

IQ-EQ reports that its middle office services have already been utilised by over 175 managers worldwide, providing operational support for the complete post-trade lifecycle. These services include trade recording, reconciliation, break resolution and the maintenance of shadow books. 

Paul Mattessich, head of outsourced middle office services (Americas) at IQ-EQ, stated that the firm was extending its middle office services to the European market by leveraging its track record in the US. He noted that the expansion would enable clients in the EU and UK to improve operational efficiencies and support their business growth. 

IQ-EQ’s middle office operations team comprises more than 50 experts, working closely with clients to implement tailored trading architectures. The firm stated that these solutions have been designed to align with specific strategies, trading frequencies, investor bases and AUM targets, allowing managers to operate in a more cost-effective manner. 

Mattessich commented on the likely adoption of a T+1 settlement cycle across continental Europe and the UK within the next 18 months, following the US transition in May 2024. 

Paul Griffith, chief commercial officer for Ireland at IQ-EQ, is set to oversee the implementation of these services across Europe and the UK. He stated that demand for middle office services is increasing as fund managers seek to optimise operational costs amid ongoing market volatility. He added that the expansion has positioned the firm to provide enhanced support to clients, ensuring that they benefit from expertise and resources aligned with their evolving needs.