Optimising the cost equation in securities clearing, settlement and custody

Abstract

Securities Clearing, Settlement and Custody as a business segment has gone through a long period of metamorphosis. Consolidation and sophistication has occurred at a business level; however, from an operating point of view there is an on-going need to constantly review operating systems and process in order to evolve a sustainable business model for growth. Systems and operating process that had previously ensured success are no longer the recipes for success in the new, changing world. Customised solutions, greater scrutiny of price and value, and cross synergies are dominating buyer behaviours in this demanding segment, which continues to play a key role in global capital flows. In this context, optimising cost equation in securities clearing and settlement is an attempt to look at an ideal operating model from a practitioner’s perspective. Focus on operation flows, constant attention to details, the holistic view of client relationship, and the cross-sell of capabilities are some of the success criteria recommended by the author as successful traits for a nimble forward-looking operating model required for the current and future needs. This paper provides a practical framework to readers, especially within the clearing and settlement domain to review their operating model on an on-going basis.