Cutter Associates launches Operations Metrics to measure trade processing effectiveness

Boston, London - 11 March 2010

Through a unique combination of three business lines - research, consulting and benchmarking - Cutter Associates works closely with asset managers to improve investment processing and make them more competitive. CutterBenchmarking has now developed Operations Metrics in close conjunction with clients in North America and Europe.

Operations Metrics is a quarterly survey providing participating firms with a clear and concise quantitative approach for assessing processing efficiency in comparison to their industry peers. Areas of discovery will include trading volume by asset type and geographic region; cancels, corrects and rebookings by asset type; percentage of securities processed that demanded manual intervention; percentage of securities that fail and reasons why, by asset type and geographic region; and aging of fails.

“By measuring processing effectiveness against peers with CutterBenchmarking, we are able to identify areas of strength and opportunities for improvement in our investment operations,” said Michael Gold, Senior Managing Director, Asset Management Services, TIAA-CREF, and the creator of the Operations Metrics concept. “Operations Metrics supports a holistic approach to risk management, by delivering broad comparative metrics to the buy side, enabling participating firms to understand, achieve and sustain optimal operational quality, service and productivity levels.”

Jacqueline Alvarez, Managing Director, CutterBenchmarking commented “Cutter Associates’ extensive network of investment management firms provides a comprehensive platform for sourcing investment operations intelligence in the industry. We are pleased to offer Operations Metrics as a way to foster discussion around reducing operations risk through improved technology and developing more efficient workflow processes. Operations Metrics has been enthusiastically received by firms who are eager to compare historical results to identify industry trends and gain insight from their peers.”

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