New York, NY - May 6, 2003 - ADP Brokerage Services Group (ADP), a division of Automatic Data Processing, Inc. (NYSE: ADP), today announced it has inked a 10-year outsourcing contract agreement with E*TRADE Group Inc. (NYSE: ET). Under the terms of the agreement, ADP will provide multi-market back-office systems processing and other related services for all of E*TRADE Securities brokerage business.
As part of this long-term partnership, E*TRADE Securities is converting its brokerage back office books and records system to ADP's Brokerage Processing Services (BPS). ADP will also provide regulatory document delivery services through its Investor Communication Services unit, as well as new brokerage account processing of paper applications. The implementation will take a phased approach and ADP's system will replace existing proprietary and vendor systems.
"We are delighted to partner with E*TRADE Financial and are proud to be able to offer them the global capabilities for converting their brokerage back office books and records systems," said John Hogan, co-President, ADP Brokerage Services Group. Hogan added, "ADP's solution will enable E*TRADE Securities to save money and use a single platform for all of their global transaction processing."
The BPS system is streamlined for beginning to end integration and ease-of-use. Once an account is opened, the client information feeds directly into the BPS name and address system. They will also have real-time access to BPS' relational database for account information and the creation of customized reports.
In addition, ADP will distribute E*TRADE Securities confirmations and statements through its PostEdgeÂ® platform. PostEdge enables the delivery of these investor documents either electronically or by traditional mail, depending on the preference of the investor. E*TRADE Securities currently outsources its proxy business to ADP.
"This change comes as part of our overall review of every aspect of our business," said Jarrett Lilien, President and Chief Operating Officer, E*TRADE Group, Inc. "After a thorough review of our back office alternatives, we chose to go with ADP. This move, first and foremost, will save us money. Strategically, we will also see benefit, as ADP will allow us greater opportunity to centralize our global securities operations, as well as allowing us to achieve operational synergies between bank and broker."