Transformation Case Study

Regional custodian bank simplifies disparate system with a single post-trade platform

Background

A top-tier custodian bank, offering retail and institutional securities services across multiple countries, began a technology transformation program to replace its legacy architecture with a modern platform to service their digital banking vision.

Historically, each country in which the bank operated was siloed in terms of technical solutions. This led to inconsistencies due to uneven resources, which especially affected large, sub-custody clients across the wider region. The bank had multiple systems supporting settlement, position keeping, asset servicing and other ancillary services, such as fees and security master files. A large portion of these home-grown legacy applications resided on dated mainframe architecture, with dwindling support.

In order to evolve, the bank focused on a business transformation program to create a single infrastructure to harmonize regional safekeeping, corporate actions and settlement infrastructures. The mission was to support sector and regulatory changes while simplifying related business processes.

Solution

Securities Processing from S&P Global Market Intelligence supports post-trade securities processing requirements across a range of client types and business lines. The Securities Processing platform addresses the industry need to simplify and optimize the post-trade technology landscape through its flexible multi-entity, multi-currency, multi-instrument architecture and flexible account structure. Institutional custody, retail and wealth management firm’s business processes are supported from a single platform, simplifying business architecture models when operating across multiple business functions.

Securities Processing will enable the top-tier custodian bank to integrate multiple operating models by consolidating over 60 fragmented applications supporting both retail and institutional clients on a single post-trade platform.

Having an enterprise post-trade platform to support both retail and institutional clients will allow the bank to support high-volume retail processing and address local market needs and practices (e.g. Securities Market Practice Group) across the region. In addition, it will further enable product standardization for the bank.

Key Benefits

Implementing the S&P Global Market Intelligence Securities Processing solution allowed the bank to support its goal of using one system for all client segments across multiple countries. The platform enables the bank to decommission multiple legacy applications and implement a single operational back-office system to apply consistent processes, except for any local market needs.

By consolidating regional market processing needs into a single processing entity within the Securities Processing platform, the bank will achieve direct connectivity between all clients and domestic CSDs. This will eliminate interoffice transactions, consolidating accounts at external custodians and achieving a standard service-level per client segment and category.

Additionally, the bank implemented the Securities Processing web-based self-service portal, enabling their front-office, middle-office and end-customer users to seamlessly interact with their post-trade environment. This allows the bank to achieve a single web portal for institutional clients with direct access into their back-office Securities Processing platform.

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