Trading & Risk Management system selection for CDO Desk
Offering: Risk mitigation, Efficiency improvements, Cost reduction, Remaining competitive
Client: US divisions of Tier 1 Global Investment & Private Banks
Client Situation
The client consisted of the US divisions of Tier 1 Global Investment and Private Banks. Regulatory compliance pressures, the need for competitive functionality and performance, and a desire to reduce costs drove the client to evaluate solution alternatives.
The client aimed to build a comprehensive wealth management platform to serve its growing HNWI (High Net Worth Individuals) and UHNWI (Ultra High Net Worth Individuals) client base. Their goals included:
Enabling self-clearing and custody capabilities to address rapid growth, improve flexibility, and deliver superior client services with more efficient processing.
Aligning the self-clearing operating model with overall strategic initiatives to ensure consistency with their long-term goals.
Key drivers for the initiative were:
Risk mitigation.
Efficiency improvements.
Cost reduction.
Remaining competitive.
Approach
We utilized our proven methodology and comprehensive toolkit to expedite the evaluation and selection process. This included:
Core functional requirements tailored specifically to the client’s needs.
Standard metrics customized for effective evaluation.
A refined RFP template for engaging target vendors and outsourced providers.
A vendor scoring model tailored to assess solutions effectively.
A framework for vendor testing and demonstrations, customized to ensure alignment with client requirements.
An interview guide for conducting vendor reference checks.
A business case framework used to develop a formal proposal for the chosen solution, Pershing.
Benefits
Business Context Diagram
Our collaboration with the client yielded significant results:
Successfully evaluated and implemented Pershing as the optimal solution.
Developed a formal business case to support the client’s decision and ensure alignment with strategic objectives.
Planned and executed the seamless integration of the new Pershing solution between the Private and Investment Banks.
Key outcomes included:
Reduced risk through better controls and streamlined operations.
Improved efficiency across the wealth management platform.
Reduced costs by optimizing processes and minimizing redundancies.
Maintained competitiveness in a rapidly evolving market.
This transformation equipped the client with a modern, integrated wealth management platform to serve their HNWI and UHNWI clients while addressing regulatory and strategic priorities.
