Accenture (NYSE: ACN) and Broadridge Financial Solutions (NYSE: BR) have launched Accenture Post-Trade Processing, a solution to help banks operating in Europe and Asia-Pacific reduce post-trade processing costs, adapt to new regulations and technology, and quickly and efficiently launch new products and enter new markets. The solution provides post-trade processing and technology services to support settlement, books and records, asset servicing, operational management and control, real-time data access and administrative accounting.
Accenture Post-Trade Processing, a strategic collaboration between Accenture and Broadridge Financial Solutions, combines Accenture’s global business process outsourcing capabilities and global capital markets industry expertise with Broadridge’s leading post-trade processing technology. Accenture and Broadridge have designed the solution to also accommodate other technology to support certain functions, such as reconciliations and corporate actions processing, which is provided by SmartStream, another key alliance partner of Accenture.
In conjunction with the launch of Accenture Post-Trade Processing, Accenture is also announcing that Societe Generale Corporate & Investment Banking (SG CIB) is the first client of the solution. The Accenture Post-Trade Processing solution will be used to optimize and manage back-office securities processing for SG CIB. As part of the initiative, a number of SG CIB employees with post-trade processing skills relevant in more than 50 financial markets are expected to join Accenture.
“The global investment banking industry is at a crossroads, with regulatory, market and technological pressures changing the economics of the business and leading banks to fundamentally reassess their operating models,” said Bob Gach, global managing director of Accenture’s Capital Markets industry practice. “Post-trade processing plays a vital role in client service, but represents a significant and often stubbornly fixed cost for banks. Our new solution provides the efficiencies, scalability and regulatory capabilities in post-trade processing that can help banks rebuild their business models around more profitable services and differentiate them from the competition.”
“Societe Generale Corporate & Investment Banking and Accenture share the same vision of what could be the future model for securities processing among investment banks: industrializing some services by mutualizing processing activities and costs across multiple institutions,” said Christophe Leblanc, Chief Operating Officer, Societe Generale Corporate & Investment Banking. “We are happy to be the first client of Accenture Post-Trade Processing, a pioneering solution that sets a new industry standard for efficiency in securities post-trade processing, and which will enable us to deliver top quality services to our clients.”
“Investment banks need to transform and are actively seeking solutions that help them enter new markets and comply with regulatory changes, all while meeting client demands,” said Steve Racioppo, Chief Revenue Officer, Broadridge Financial Solutions. “With Broadridge’s technology as the engine behind the solution and Accenture’s expertise in capital markets, we can see this solution becoming the industry standard for post-trade processing.”
“This collaborative effort, which brings deep market expertise and technology to create a shared service solution for multiple clients, exemplifies the customer-focused thinking that will transform the industry,” said Philippe Chambadal, CEO of SmartStream.
Accenture Post-Trade Processing will offer scalable, cost-efficient securities processing based on Broadridge’s proven technology and Accenture and Broadridge’s combined industry-leading practices for cash equities, bonds, notes and warrants. By mutualizing activities and costs from multiple institutions, the solution is designed to:
- Reduce cost-per-trade by leveraging collective trade volumes.
- Optimize performance with access to real-time information regarding collective trading activity.
- Reduce the complexity and resources required to comply with current and emerging trading and accounting regimes, including regulations such as TARGET2-Securities (T2S) and Central Securities Depository Regulation (CSDR) /T+2.
- Provide a common, standardized and highly flexible operating platform that enables clients to quickly and efficiently launch new financial products and enter new markets without the hurdles of legacy IT systems.
- Process and settle securities transactions for more than 50 financial markets globally.
“Our goal is to set a new industry standard for post-trade processing efficiencies,” said Eugenio Bonomi, senior managing director and head of Accenture Post-Trade Processing. “By mutualizing costs across a large volume of trades from multiple institutions, Accenture Post-Trade Processing will enable banks of all sizes to limit the need for capital investment and affordably address their clients’ securities processing needs.”