Conversion of Brokerage Processing & Client Reporting Systems Following Merger
Offering: Risk mitigation, Efficiency improvements, Cost reduction, Remaining competitive, Post-merger integration
Client: Top Tier Global Brokerage Services Firm (Joint Venture Clearing Firm)
Client Need
The client sought a strategic partner with the leadership, expertise, and resources to transform their front-to-back in-house equity brokerage processing platform into an integrated solution with market-standard vendor components. The goal was to enhance client service levels, improve operational efficiency, and expand functional capabilities to support significant business growth and the launch of a new prime brokerage business.
Client Profile
Global multi-asset brokerage services firm.
Industry leader in listed derivatives with expanding equity and fixed-income franchises.
Processes approximately 300,000–400,000 trades daily.
Client Situation & Objectives
Following a merger, the newly consolidated entity faced several challenges and objectives:
Business Growth Goals:
Drive significant growth in equity and prime brokerage businesses.
Develop and launch a robust prime brokerage platform targeting new equity-based clients such as startups and high-frequency trading firms.
Disparate Legacy Platforms:
One entity relied on an undocumented, inflexible, and unscalable proprietary platform supported by a single resource.
The other entity used the Broadridge BPS vendor package, creating operational inconsistencies.
Front-office operations were based in NYC, while technology and operational support were in San Francisco, exacerbating inefficiencies.
Operational and Strategic Gaps:
Required a modernized and flexible platform to gain efficiencies, reduce costs, and mitigate risks.
Sought to centralize operations and technology support in NYC to enhance customer service quality.
Target Solution:
Selected SunGard Phase3 as the new equity broker-dealer processing system to replace legacy platforms and meet future business requirements.
Faced additional integration challenges and needed a tailored implementation plan to address gaps.
Key drivers for this transformation included:
Risk mitigation.
Efficiency improvements.
Cost reduction.
Remaining competitive.
Post-merger integration.
Approach
Capital Markets Advisors adopted a structured and methodical approach to ensure the success of the transformation:
Program Management:
Established and executed a Program Management Office (PMO) to oversee all activities and workstreams.
Testing Management:
Developed and disseminated structured testing strategies, including training for client resources.
Conversion Planning:
Defined a clear conversion strategy and managed the seamless migration of client accounts to the new back-office and reporting systems.
Documentation Management:
Conducted a detailed analysis of current and future state requirements.
Identified and addressed gaps, created workarounds, and developed comprehensive training and documentation to support the conversion.
Benefits
Capital Markets Advisors delivered substantial benefits through expert execution and a proven methodology:
Integrated Solution:
Successfully planned and implemented the SunGard Phase3 platform, integrating additional components for client reporting and margining.
Operational Readiness:
Enabled simultaneous Go-Live of seven technology workstreams through disciplined program management.
Developed detailed procedures and training programs for client teams across multiple locations, ensuring smooth account conversion from legacy applications.
Key Outcomes:
Reduced Risk: Mitigated operational and technological risks during the transition.
Improved Efficiency: Streamlined processes and workflows across the organization.
Cost Reduction: Lowered operational costs by replacing redundant systems and optimizing workflows.
Enhanced Competitiveness: Positioned the client to attract new clients and maintain market leadership.
Post-Merger Integration: Unified platforms and operations, enabling cohesive growth and scalability.
This transformation empowered the client to achieve strategic objectives, scale operations, and maintain a competitive edge in the brokerage and prime services market.
