Trade execution costs are one of the largest expenses incurred by capital market firms and most do not realize that they might be overpaying!
This normally happens on account of the manual processes to manage the mesh of contractual relationships with wide range of execution venues.
Some firms may even have multiple contracts at the desk level with the same broker, each with different pricing for the same services.
Most firms are unaware that these overlapping contracts exist and very few examine trading expenses at the enterprise level to determine which trading relationships are the most cost-effective and valuable for the firm as a whole.
What we offer
Tech Mahindra’s TEEM is a BPaaS independent transaction cost analysis service that helps capital market firms to automate the reconciliation of trade execution expenses, reduce fee leakage, optimize commercial trading terms and enable strategic costing decisions for the company by having a clear view into all of their vendor relationships.
Some of the metrics that the platform analytics engine will enable customers to track are:
- Cost by execution venue – Exchanges / Brokers
- Cost by trading style
- Profitability of new and existing clients
- Incremental volumes to reach next venue pricing tier structure
- Analyze trading cost structure across execution / clearing / settlement and custody
IMPROVE PROCESS EFFICIENCY
- Move business processes to an exception-based model
- Adopt industry best practices designed to minimize manual touch points, optimize automation and promote straight-through processing
- Optimize commercial agreements across the enterprise via cross-vendor comparison and best execution analysis
- Strengthen commercial position through the provision of specific renegotiation analytics and reports
REDUCE OPERATIONAL COSTS
Deliver early ROI through accelerated savings, drive down the cost, time and risk of manual processes, and transform CapEX into OpEX.
- Platform based solution which can seamlessly integrate with existing trading systems
- Increases operational efficiency by 30% via process automation
- Minimize fee leakage via fully automated fee validation and reconciliation
- Reduce manual intervention by adopting an exception-based processing model
- Use reconciled fee data to automate the allocation across cost centres and desks
TIMELY RETURN ON INVESTMENT
Investments in TEEM deployments will be met with a rapid ROI thanks to:
- An up-front “discovery” approach that supports KPI-based personalized pricing
- Projected savings of 8-15% on total BCE fees
- Up to $35 million in annual savings in execution fees for Tier 1 firms