Post trade utilities

We help our clients to re-architect their post trade operations and tackle the issues of cost, control, compliance, and client centricity.  We combine deep experience in front, middle and back office functions with our skills in organisation transformation and breakthrough, to design and implement shared service models that can serve all business units of the bank with the same simpler, scalable and robust operating infrastructure.

The dramatic growth of the markets industry over the last 20 years has led to an asymmetric evolution of front, middle and back office capabilities.  Product alignment dominated all conscious business design and architectures, as every player sought to exploit the enormous revenue and margin opportunities that were available.  The investment bias to front office trading applications, and the complexity of traded products, has led to post-trade architectures that are typified by multiple versions of fragmented, product aligned legacy applications, extensive manual processes and batch processing.  Every organisation is now struggling with the complexity of supporting and maintaining their post trade environment, and the myriad of challenges relating to operating cost, control, compliance, funding, risk management and client servicing.

Incremental improvement programmes and LEAN initiatives have typically failed to address these challenges. Such is the level of performance improvement required across a range of competing demands that even ‘stretch’ transformation programmes are being overtaken by ‘breakthrough’ thinking.

Firms recognise the value of early generation utilities to rationalise and simplify their operating architectures, and focus on the most optimum way to deliver post trade business services, demanding intra-day processing through the whole trade lifecycle, along with improved views of risk and controls and permanent cost elimination. We believe that the emerging trend of industry-wide utilities will only serve to accelerate this post trade transformation.