New York
29 April 2014
Reporter: Stephen Durham

Broadridge extols centralisation


Margin compression, the drive for cost reduction and increasing regulatory pressures are forcing banks to seek ways to reduce trade execution expenses and gain transparency, according to a paper by Broadridge.

The capital markets industry viewpoint whitepaper, titled “Key Challenges and Best Practices in Trade Expense Management”, found that the most sophisticated banks have moved toward a more centralised management of their expenses across business units and asset classes.

This has allowed them to gain a more holistic view of their trade operations and promote greater efficiency in order to provide accurate data-driven insights to lower costs, negotiate favourable vendor agreements and better allocate and forecast expenses to create more accurate profit and loss reports and budgets.

While almost all those surveyed for the paper agreed on the need for a more centralised and automated approach, very few banks have achieved it due to the challenges of creating a core utility linking various business functions and locations, as well as the need for invoice transparency, data and fee accuracy and regulatory compliance.

Terence Faherty, head of product strategy for Broadridge’s revenue and expense management solutions, commented: “There is a compelling business need and bottom line impact for banks to assess their current trade expense management practices.”

“Many of the challenges the industry faces around fee schedules are not new; however, there are increased complexities and regulatory pressures. We expect these trends to continue and will result in the need for an automated and centralised expense management utility that can provide a more holistic and data-driven view of the organisation.”

“This approach will allow for improved accuracy and transparency that can drive greater efficiencies and cost reductions.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
LEIs offer major cost savings, says OFR
17 November 2017 | Washington DC | Reporter: Drew Nicol
The OFR noted that early academic studies found that cost savings associated with adoption of the LEI approached $1 billion annually
InvestCloud builds on digital platform
17 November 2017 | Los Angeles | Reporter: Stephanie Palmer
Financial technology provider InvestCloud has added a new portfolio management tool to its digital platform
Deutsche Boerse taps UniCredit’s Theodor Weimer as CEO
16 November 2017 | Frankfurt | Reporter: Drew Nicol
Theodor Weimer begins his new role in January, and will take over from Carsten Kengeter, who will leave Deutsche Boerse at the end of 2017
Volante and Open Vector partner
16 November 2017 | New York | Reporter: Jenna Lomax
Open Vector open banking strategy will be combined with Volante’s VolPay Channel
Industry consortium creates third-party risk platform
16 November 2016 | London | Reporter: Theo Andrew
TruSight includes American Express, Bank of America, J.P. Morgan Chase and Wells Fargo, and intends to deliver a “comprehensive approach”
Northern Trust AM names new regional COO
16 November 2016 | London | Reporter: Theo Andrew
Northern Trust Asset Management (AM) has promoted Martha Fee to COO for Europe, the Middle East and Africa and the Asia-Pacific region
Vela launches new data hub
15 November 2017 | London | Reporter: Jenna Lomax
The new data hub will provide clients with access to multiple systematic internaliser liquidity price feeds through a single application programming interface
More news